Island Fabricating Limited is contemplating an investment project with the following cash flows: Year Net Cash Flow

Question:

Island Fabricating Limited is contemplating an investment project with the following cash flows:
Year Net Cash Flow
($ thousands)
0 ...............................(120,000)
1 ............................... 310,000
2 ...............................(200,000)
Required:
(a) Calculate the of the project using a of 8%.
(b) Calculate the internal rate of return.
(c) Can you find another internal rate of return?
(d) Should the project be accepted? Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...