Question
A project that costs $2,500 to install will provide annual cash flows of $750 for each of the next 5 years. a. Calculate the NPV
A project that costs $2,500 to install will provide annual cash flows of $750 for each of the next 5 years.
a. Calculate the NPV if the opportunity cost of capital is 10%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) NPV $
b. Is this project worth pursuing? Yes No
c. What is the project's internal rate of return IRR? (Do not round intermediate calculations. Round your answer to 2 decimal places.) IRR %
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College Accounting A Contemporary Approach
Authors: David Haddock, John Price, Michael Farina
3rd edition
978-0077639730
