RWJ 7th Edition Solutions - Colby College
18. At a zero discount rate (and only at a zero discount rate), the cash flows can be added together across time. So, the NPV of the project at a zero percent required return is: NPV = – $568,240 + 289,348 + 196,374 + 114,865 + 93,169 = $125,516. If the required return is infinite, future cash flows have no value. ................
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