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A project has an initial cost of $50,000. The incremental inflows associated with the project are $20,000 in year one, $15,000 in years two and
A project has an initial cost of $50,000. The incremental inflows associated with the project are $20,000 in year one, $15,000 in years two and three, and $10,000 in year four. All cash inflows are at the end of the year. The appropriate discount rate for this project is 11%. Should the company accept the project?
The correct answer was yes, but I do not understand why? I received a NPV of -$2,252.47. MIRR 9.73% IRR 8.64%
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