Question: Suppose a firm has a weighted average cost of capital is 8 percent. Given the following cash flows, calculate the Net Present Value & the appropriate rate of return.
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CF 0
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CF 1
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CF 2
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CF 3
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CF 4
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|
|
|
|
|
|
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-200
|
100
|
500
|
-100
|
700
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Note: Negative sign denotes an outflow & a positive sign an inflow.