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Unformatted text preview: Internal rate of return 17 % AE916 As indicated, the NPV is close to zero $45 at a rate of 6%. Thus, the IRR is approximately 6 %. PV at 6 % Cash Flow PV Factor Total $(1,360,000) 1.0000 $(1,360,000) (539,400) 0.9434 (508,870) 150,000 0.8900 133,500 650,000 0.8396 545,740 Should the company develop the ecommerce business if the required rate of return is 10 percent? No Click here if you would like to Show Work for this question AE916 No . Given that the required rate of return is 10%, the ecommerce business should not be developed....
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 Spring '11
 Hodgson,K
 Net Present Value, Internal rate of return, ecommerce business, Newport Department Store

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