Question
A project requires an initial investment of $40,000 and will then generate free cash flows of $19,000 every year for 4 years. The project has
A project requires an initial investment of $40,000 and will then generate free cash flows of $19,000 every year for 4 years. The project has a required return of 12%.
What is the project's NPV (in $ million)?
What is the project's internal rate of return?
Should you accept this project?
Yes, based on NPV
No
Yes, based on IRR
Yes, based on both IRR and NPV
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Fundamentals Of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
1st Edition
0201844842, 978-0201844849
