Question
ABC, Inc. is considering a project for potential adoption. The opportunity cost of capital is 12%. The projects cash flows are follows: C0 C1 C2
ABC, Inc. is considering a project for potential adoption. The opportunity cost of capital is 12%. The projects cash flows are follows:
| C0 | C1 | C2 | C3 |
| -$15,000 | 0 | $8,200 | $9,500 |
(a) What is the projects NPV? (b) Should the project be accepted if the projects internal rate of return is higher than 12% (IRR > 12%)? (Yes or No)
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Venture Capital And The Finance Of Innovation
Authors: Andrew Metrick
1st Edition
0470074280, 9780470074282
