M3 Pharmaceuticals is considering a drug project that costs $2.55 million today and is expected to generate end-of-year annual cash flows of $237,000 forever. At what discount rate would the company be indifferent between accepting or rejecting the project?
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The project costs $2.55 million today and is expected to generate annual cash flows of $237,000 forever. Show more…
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A project that provides annual cash flows of $15,300 for nine years costs $74,000 today. NPV for project if required return is 8 percent = $21,577.49 NPV if the required return is 20 percent = $-12,326.21 Q. At what discount rate would you be indifferent between accepting the project and rejecting it? (enter your answer as a percent rounded 2 decimal places)
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