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2 Question 16 (10 points) A project has the cash flows from Year O to Year 4, respectively, as following: -102,700; -109,200; 166,400; 175,900;
2 Question 16 (10 points) A project has the cash flows from Year O to Year 4, respectively, as following: -102,700; -109,200; 166,400; 175,900; -20,000. Which decision should you make on this project, assuming the WACC is 13%? Accept because its NPV is $40,619.59. Reject because this is a project with non-normal cash flows. Reject because its IRR is 24.42%. Accept because its IRR is 24.42%. Reject because its NPV is $40,619.59.
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