Consider a project that requires an initial investment of


Consider a project that requires an initial investment of $101,000 and will produce a single cash flow of $150,000 in 6 years.

a. What is the NPV of this project if the 6?-year interest rate is 4.9% ?(EAR)?

b. What is the NPV of this project if the 6 6?-year interest rate is 9.8% ?(EAR)?

c. What is the highest 6 6?-year interest rate such that this project is still? profitable?

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Financial Management: Consider a project that requires an initial investment of
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