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Question 50

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Use the information for the question(s) below.
Boulderado has come up with a new composite snowboard.Development will take Boulderado four years and cost $250,000 per year,with the first of the four equal investments payable today upon acceptance of the project.Once in production the snowboard is expected to produce annual cash flows of $200,000 each year for 10 years.Boulderado's discount rate is 10%.
-The NPV profile graphs:


A) the project's NPV over a range of discount rates.
B) the project's IRR over a range of discount rates.
C) the project's cash flows over a range of NPVs.
D) the project's IRR over a range of NPVs.

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