Question
A startup Internet company has generated the following cash balance for the first six years of its IS projects: 2$250,000, 2$180,000, $225,000, $340,000, $410,000, and
A startup Internet company has generated the following cash balance for the first six years of its IS projects: 2$250,000, 2$180,000, $225,000, $340,000, $410,000, and $425,000. Using the NPV function in Excel, calculate the net present value of this project at an 8.5 percent interest rate. What is the IRR of this project? If a bank is willing to give the company a loan at 15 percent to implement these projects, should the company accept the loan (assuming there are no other conditions)? Why or why not?
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Financial Accounting
Authors: C Thomas,
12th Edition
007760086X, 9780077600860
