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A firm is considering investing in a project with the following cashflows year 1 2. 3. 4. 5. 6. 7 8. net cash. 2000. 3000.

A firm is considering investing in a project with the following cashflows

year 1 2. 3. 4. 5. 6. 7 8.

net cash. 2000. 3000. 4000. 3500. 3000. 2000. 1000. 1000

the project requires and initial investment of 12500 and the firm has a required rate of return of 10%. compute the payback, discounted payback and net present value and determine whether the project should be accepted

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