Answered: e) In a net present value (NPV)… | bartleby

Linear Algebra: A Modern Introduction

Linear Algebra: A Modern Introduction

4th Edition

ISBN:9781285463247

Author:David Poole

Publisher:David Poole

Chapter2: Systems Of Linear Equations

Section2.4: Applications

Problem 28EQ

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e) In a net present value (NPV) analysis it is found that proceeding with a contract with required
rate of return of 8% gives an NPV of $20,000 while if the required rate of return is 10% then
the NPV is
-$5,000. Use linear interpolation to estimate the internal rate of return (IRR) for this contract.

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