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A company is considering a 4-year project with the following cash flows: Co-$20,000 C=C = C3=C4 = $7,000 If the company's opportunity cost of capital
A company is considering a 4-year project with the following cash flows:
Co-$20,000 C=C = C3=C4 = $7,000
If the company's opportunity cost of capital is 12%, then compute the following for the project:
a) the project's IRR
b)the project's NPV
c) determine if the project will have more than 1 IRR
d) The project's PI
e) Should the project be rejected because its payback period is longer than two years?
f) Should the project be rejected because its IRR is greater than its required rate of return?
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