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Discount rate 15% Question 2: (4 points) Consider a project that costs $500 today The project is expected to generate the following cash flows as
Discount rate 15% Question 2: (4 points) Consider a project that costs $500 today The project is expected to generate the following cash flows as listed in the table Calculate the IRR and the NPV. Assuming a discount rate of 15%, would you invest in this project? Why? Justify your answers. Discuss your analysis. Build a chart of the NPV as a function of different discount rates Date 2-May-18 14-Feb-19 14-Feb-20 14-Feb-21 14-Feb-22 14-Feb-23 14-Feb-24 Cash flow -500 100 300 400 600 800 -1,800
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