Question: Consider a project that need an initial investment of $100,000 & will produce a single cash flow of $150,000 in 5 years.
[A] Calculate the NPV of this project if the 5year interest rate is 10% (EAR)?
[B] Calculate the NPV of this project if the 5year interest rate is 5% (EAR)?
[C] Calculate the highest 5year interest rate such that this project is still profitable?