What is the npv of project


Problem:

Consider a project that requires an initial investment of 99,000 and will produce a single cash flow of 153,000 in 4 years.

Required:

Question 1: What is the NPV of this project if the 4-year interest rate is 5.1% EAR?

Question 2: What is the NPV of this projcet if the 4-year interest rate is 10.1 (EAR)?

Question 3: What is the highest 4-year interest rate such that this project is still profitable?

Note: Show all workings.

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