Question
6.Your firm has an opportunity to make an investment if 50,000. Its cost of capital is 12 percent. Its expects after-tax cash flows for the
6.Your firm has an opportunity to make an investment if 50,000. Its cost of capital is 12 percent. Its expects after-tax cash flows for the next 5 years to be as follows
Year 110,000
Year 2 20,000
Year 3 30,000
Year 4 20,000
Year 5 5,000
a)Calculate NPV
b)B) Calculate IRR
c)Would you accept the project?
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
