Cornell Company is considering a project with an initial investment of $596,500 that is expected to produce cash inflows of $125,000 for nine years. Cornell's required rate of return is 12%.

14.) What is the NPV of the project?

Years		Net Cash Inflow	Annuity PV Factor (i=12%, n=9)	Present Value
1-9	Present value of annuity
0	Investment	-(leave empty)-	-(leave empty)-
	Net present value	-(leave empty)-	-(leave empty)-

15.) What is the IRR of the project?

Start by calculating the Annuity PV factor. (Enter the factor amount to three decimal places, X.XXX)

(Amount of cash inflow, initial investment, required rate of return, or years) / (Amount of cash inflow, initial investment, required rate of return, or years) = Annuity PV factor

(_____) / (_____) = Annuity PV factor

The IRR of the project is: 12-14%, 14%, 14%-15%, 15%, 18%, or 18-20%?

16.) Is this an acceptable project for Cornell?

This (is/is not) an acceptable project for Cornell, because the NPV is (greater/less) than zero and the IRR is (less/greater) than Cornell''s required rate of return.