Homework Answers
Minimum cash flow at which the project will be approved = Value of project= PV of annuity = Annuity*(1-1/(1+rate)^number of terms)/rate
= 10000000*(1-1/(1+5%)^15)/5%=
| $103796580.38 |
Hence the Minimum cash flow at which the project will be approved = $103796580.38
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