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1. Estimated incremental cash flows from a proposed project are given in column B. If the costs of capital are as given in column
1. Estimated incremental cash flows from a proposed project are given in column B. If the costs of capital are as given in column C, what are the NPVS of this project? Based on the NPV decision rule, should the company accept or reject the proposed project at each cost of capital? What is the IRR of this project? If the company's cost of capital is 15%, based on the IRR decision rule, should the company accept or reject the proposed project? YEAR 3 0 CASH FLOWS -$500.00 COST OF CAPITAL NPV Accept/Reject? 0% 1 $100.00 5% 0 2 $250.00 10% 1 3 $300.00 15% 2 3 IRR 14 Accept/Reject? 15 16 Y-INTERCEPT IN NPV PROFILE GRAPH? 17
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