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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Granularity Theory With Applications To Finance And Insurance
Authors: Patrick Gagliardini, Christian Gourieroux, Christian Gouriéroux
1st Edition
1316057135, 9781316057131
