End of Chapter Exercises: Solutions - UQ

NET CASH FLOWS (IN $ 1,000) YEAR. PROJECT A. ... bearing in mind that projects with a 5-year life will have terminal value after 5 years which needs to compounded forward at the reinvestment rate (15% and 20%) to year 10, and the residual deposited in the bank is always compounded over 10 years at a 15% interest rate. ... ................
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