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Can someone help me find the NPV and if it should be accepted or rejected. Suppose your firm is considering investing in a project with
Can someone help me find the NPV and if it should be accepted or rejected.
Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 9 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively.
Time: | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
Cash flow: | $7,100 | $1,100 | $2,300 | $1,500 | $1,500 | $1,300 | $1,100 |
Use the NPV decision rule to evaluate this project. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Should it be accepted or rejected?
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