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A project requires an initial investment of $528 mllion, yields a positive cash flow of $1,525 million in 1 year (t-1), and concludes with a
A project requires an initial investment of $528 mllion, yields a positive cash flow of $1,525 million in 1 year (t-1), and concludes with a termination cost of $1,046 million in 2 years ( 2). These cash flows are shown in the table below: $528 M $1,525 M -$1,046 M The discount rate for the project is 6.0% APR and spreadsheet analysis has found an internal rate of return of 12.0%. Given this information, should the firm invest in the project? a. Yes, the firm should invest in the project b. No, the firm should not invest in the project c. The correct decision is unclear d. There is not enough information
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