TOPS the Legal Pad 29. Beta company is evaluating a project which requires an initial...
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TOPS the Legal Pad 29. Beta company is evaluating a project which requires an initial cash outflow of $200 in Year 0, and will produce cash inflows of $70, $70, and $100 in Years 1, 2 & 3, respectively. At what discount rate is the company indifferent about accepting or rejecting the project? If the required rate of return (the discount rate) of the project is 10%, should Beta accept or reject the project? a. Indifferent at 9.09% Accept the project b. Indifferent at 9.09% Reject the project c. Indifferent at 10.00% Indifferent about the project d. Indifferent at 15.63% Accept the project Indifferent at 15.63% Reject the project e. 30 You are evaluating ? mutually exclusive nrniects. The discount rate that makes you indifferent
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