Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Consider an investment project, which behaves according to the cash flow (in local currency) below, as well as the respective inflations for the period.
In view of the above and knowing that the capital cost of the project is 15% per year, it is requested:
a) The values of NPV and
b) A graphical sketch of NPVs versus interest rates
c) Decision on the feasibility of the project regarding the IRR and NPV indicators
Anos = years
Fluxo de caixa = cash flow
Taxa de inflação do período = period inflation rate
Transcribed Image Text:Anos
0
1
2
3
4
5
678
Fluxo de Caixa ($)
0
290.000,00
140.000,00
200.000,00
-1.240.000,00
800.000,00
600.000,00
150.000,00
248.000,00
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