Question
Benson Designs has prepared the following estimates for a long-term project it is considering. The initial investment is $44,850, and the project is expected to
Benson Designs has prepared the following estimates for a long-term project it is considering. The initial investment is $44,850, and the project is expected to yield after-tax cash inflows of $9,000 per year for 8 years. The firm has a cost of capital of 11%.
a.Determine the net present value (NPV) for the project.
b.Determine the internal rate of return (IRR) for the project.
c.Would you recommend that the firm accept or reject the project?
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Personal Finance Version 3.1
Authors: Rachel S. Siegel
3rd Edition
1453334807, 978-1453334805
