Question
First Part: A magazine publisher wants to launch a new magazine geared to college students. The project's initial investment is $ 63 . The project's
First Part: A magazine publisher wants to launch a new magazine geared to college students. The project's initial investment is $63. The project's cash flows that come in at the end of each year are $24 for 5 consecutive years beginning one year from today. What is the project's NPV if the required rate of return is 18%? Place your answer in dollars and cents without the use of a dollar sign or comma. If applicable, a negative answer should have a "minus" sign in front of the number. Work your analysis out to at least 4 decimal places of accuracy. Second Part Based upon the NPV decision rule, should the company accept or reject the project?
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