An investment with total costs of $9,000 will generate total revenues of $10,000 for one year. Round your answers to the nearest dollar. a. If funds cost 11 percent, the NPV is $ b. What would be your advice to management? Would your answers be different if the cost of capital is 7 percent? c. If funds cost 7 percent, the NPV is $ d. What is your advice to management?

An investment with total costs of $9,000 will generate total revenues of $10,000 for one year. Round your answers to the nearest dollar. a. If funds cost 11 percent, the NPV is $ b. What would be your advice to management? Would your answers be different if the cost of capital is 7 percent? c. If funds cost 7 percent, the NPV is $ d. What is your advice to management?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 28P

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