Financial Evaluation
An investment has these cash flows:
YearCash Flow ($)
0-$7,500,000
1$3,000,000
2$4,500,000
3-$1,500,000
Requirements:
1.Develop the NPV profile.
2.Determine the IRR.
3.Calculate the NPV using a discount rate of 17%.
4.Decide on the project's acceptance if the cost of capital is 17%.