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What the percentage increase in the value of annual cash

    Assignment Instructions

    Assignment ID: FG132607728

    A five year project has a net present value of £160,000 when it is discounted at 12%. The project includes an annual cash outflow of £50,000 for each of the five years. No tax is payable on projects of this type.
    Question 1: The percentage increase in the value of this annual cash outflow that would make the project no longer financially viable is closest to:
    a) 64%
    b) 89%
    c) 113%
    d) 156%

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