Question
A company is considering a project that has the following cash flows: C0 = -1,500, C1 = +800, C2 = +200, and C3 = +900,
A company is considering a project that has the following cash flows: C0 = -1,500, C1 = +800, C2 = +200, and C3 = +900, with a risk-adjusted discount rate of 11%. A) Calculate the Net Present Value (NPV), Profitability Index, and the modified internal rate of return (MIRR). B) If you were the manager of the firm, would you accept or reject the project based on the calculation results above?
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Introduction to Managerial Accounting
Authors: Peter Brewer, Ray Garrison, Eric Noreen
7th edition
978-1259675539, 125967553X, 978-1259594168, 1259594165, 78025796, 978-0078025792
