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Company A has the following cash flows year 0 (200,000) year 1 50,000 year 2 100,000 year 3 200,000 Cost of Capital = 12% A)
Company A has the following cash flows year 0 (200,000) year 1 50,000 year 2 100,000 year 3 200,000 Cost of Capital = 12% A) NPV (1 point) 1) solve for NPV company A 2) Using NPV would you proceed with the project and why? B) IRR (1 point) solve for IRR for Company A Using IRR would you proceed with the project and why?
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