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A company is considering a project that has the following cash flows: C 0 = -5,000, C 1 = +900, C 2 = +2,500, C

A company is considering a project that has the following cash flows:

C0 = -5,000, C1 = +900, C2 = +2,500, C3 = +1,100, and C4 = +2,900 with a risk-adjusted discount rate of 12%.

  1. Calculate the Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index, and the Payback of this project.
  2. If you were the manager of the firm, will you accept or reject the project based on the calculation results above?

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