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Visby Rides, a Livery Car Company, Is Considering Buying Some

Question 97

Multiple Choice

Visby Rides, a livery car company, is considering buying some new luxury cars. After extensive research, they come up with the above estimates of free cash flow from this project. By how much could the discount rate rise before the net present value (NPV) of this project is zero, given that it is currently 10%? A) 12% B) 17% C) 27% D) 22% Visby Rides, a livery car company, is considering buying some new luxury cars. After extensive research, they come up with the above estimates of free cash flow from this project. By how much could the discount rate rise before the net present value (NPV) of this project is zero, given that it is currently 10%?


A) 12%
B) 17%
C) 27%
D) 22%

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