Calculating maximum amount that can be invested in a project


A project is expected to generate cash flows of $14,000 annually for six years plus an additional $27,000 in year 6. The cost of capital is 10%

Q1. What is the most you can invest in this project at time 0 and still have a positive NPV?

Q2. What is the most you can invest in this project at time 0 if you want to have a 15% IRR?

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Finance Basics: Calculating maximum amount that can be invested in a project
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