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Company X is evaluating a proposed capital budgeting project that will require an initial investment of $176,000. The project is expected to generate cash flows
Company X is evaluating a proposed capital budgeting project that will require an initial investment of $176,000. The project is expected to generate cash flows of: Year 1- $46,000, Year 2- $51,900, Year 3- $49,200, Year 4- $48,900. Question one-The desired rate of return is 10%. What is the net present value of the project? Question two- If company x has enough capital to fund the project and the project is not competing with funding with other projects, should Company x accept or reject the project
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