*Complete the problems in an Excel spreadsheet. Be sure to show your work to receive credit; no hard keys.

Problem 12-1: Net Present Value (NPV) and Internal Rate of Return :

A firm is considering a major expansion that will cost SAR 12,000,000.

Annual cash flows from the project are expected to be SAR 3,000,000 for 6 years.

The firm uses a discount rate of 10%.

Calculate the Net Present Value (NPV) and the Internal Rate of Return of the project and determine if the project is acceptable based on NPV and IRR decision criteria.