Use the information for the question(s)below.
-The owner of a hair salon spends $1,000,000 to renovate its premises,estimating that this will increase her cash flow by $220,000 per year.She constructs the above graph,which shows the net present value (NPV)as a function of the discount rate.At what discount rate does her decision to renovate become untenable?
A)3.0%
B)3.3%
C)4.0%
D)4.8%
E)5.0%

Question

Use the information for the question(s)below. 
-The owner of a hair salon spends $1,000,000 to renovate its premises,estimating that this will increase her cash flow by $220,000 per year.She constructs the above graph,which shows the net present value (NPV)as a function of the discount rate.At what discount rate does her decision to renovate become untenable?
A)3.0% 
B)3.3% 
C)4.0% 
D)4.8% 
E)5.0%

Quizplus · Accepted Answer

The Answer of Use the information for the question(s)below. 
-The owner of a hair salon spends $1,000,000 to renovate its premises,estimating that this will increase her cash flow by $220,000 per year.She constructs the above graph,which shows the net present value (NPV)as a function of the discount rate.At what discount rate does her decision to renovate become untenable?
A)3.0% 
B)3.3% 
C)4.0% 
D)4.8% 
E)5.0%

Use the Information for the Question(s)below