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2. A firm is considering investing in a project with the following cash flows: 1 2 3 4 50,000 60,000 70,000 Points in time (yearly
2. A firm is considering investing in a project with the following cash flows: 1 2 3 4 50,000 60,000 70,000 Points in time (yearly 0 intervals) Project A -180,000 cost of capital is 10 per cent. Required: 80,000 a) Calculate the internal rate of return (IRR) (1.5 marks) For project A: try 15% and 16% b) Calculate the net present value (NPV) for each project. (1 mark)
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