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Amonzon is considering building a new factory. It will require an initial cash outflow of $110,000 and is estimated to generate cash inflows of $20,000
Amonzon is considering building a new factory. It will require an initial cash outflow of $110,000 and is estimated to generate cash inflows of $20,000 each year for 11 years. a. What is the project's NPV if the required rate of return is 8 %? b. What is the project's NPV if the required rate of return is 15 %? c. Would the project be accepted under part (a) or (b)? d. What is the project's IRR? a. If the required rate of return is 8 percent, the project's NPV is $ (Round to the nearest cent.) b. If the required rate of return is 15 percent, the project's NPV is $ (Round to the nearest cent.) c. Based on the NPV criterion, the project under part (a) should be because its NPV is if the required rate of return is 8 percent. (Select from the drop-down menus.) Based on the NPV criterion, the project under part (b) should be because its NPV is v if the required rate of return is 15 percent. (Select from the drop-down menus.) d. The project's IRR is %. (Round to two decimal places.)
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