a) Determine the NPV of the project with the cash flows described in the table below if the per period interest rate were 5% ? Would you invest in the project? Time t Today Year +1 Year +2 Year +3 Year +4 Year +5 Project Cash Flow Ct - $900 +$200 +$200 +$400 +$400 -$100 b) What if the interest rate were 9% ?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 13P
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Hi could you please help me to solve these questions? Thanks 

Question 2.
a) Determine the NPV of the project with the cash flows described in the table below if the
per period interest rate were 5% ? Would you invest in the project?
Time
t
Today
Year +1
Year +2
Year +3
Year +4
Year +5
Project
Cash Flow
Ct
- $900
+$200
+$200
+$400
+$400
- $100
b) What if the interest rate were 9% ?
Transcribed Image Text:Question 2. a) Determine the NPV of the project with the cash flows described in the table below if the per period interest rate were 5% ? Would you invest in the project? Time t Today Year +1 Year +2 Year +3 Year +4 Year +5 Project Cash Flow Ct - $900 +$200 +$200 +$400 +$400 - $100 b) What if the interest rate were 9% ?
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