A new HVAC system will require an initial outlay of $16,500
Question
A new HVAC system will require an initial outlay of $16,500, but it will
increase the firm’s cash flows by $3,300 a year for each of the next 6 years.
a. Calculate the NPV if the required rate of return is 8%
b.Calculate the NPV if the required rate of return is 13%
c. if you were to reject the project before how high can the discount rate be?
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