Purchase Solution

would the project be accepted at a discount rate of 2%?

Not what you're looking for?

Ask Custom Question

A project that costs $2500 to install will provide annual cash flows of $600 for the next 6 yrs. The firm accepts projects with payback periods of less than 5 years. Will the project be accepted? Should this project be pursued if the discount rate is 2%? What if the discount rate is 12%? Will the firm's decision change as the discount rate changes?

Purchase this Solution

Solution Summary

The project would be accepted at a discount rate of 2%

Solution Preview

Yes, the project would be accepted at a discount rate of 2% as the NPV at year 5 is $328, which means a ...

Purchase this Solution

Free BrainMass Quizzes
Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Operations Management

This quiz tests a student's knowledge about Operations Management


This tests some key elements of major motivation theories.