At what discount rate does the following project have a positive NPV of exactly $1,000? Time 0 investment = -$10,000 Year 1-7 Cash Flows = +$2,500 %3D

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 16EB: Project Y cost $8,000 and will generate net cash inflows of $1,500 in year one, $2,000 in year two,...
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At what discount rate does the following project have a positive NPV of exactly $1,000?
Time 0 investment = -$10,000
Year 1-7 Cash Flows = +$2,500
Transcribed Image Text:At what discount rate does the following project have a positive NPV of exactly $1,000? Time 0 investment = -$10,000 Year 1-7 Cash Flows = +$2,500
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