1. General Electric evaluates a new project with an initial investment of $30,000,000, expected cash flows: Year 1 $8,000,000, Year 2 $10,000,000, Year 3 $12,000,000, discount rate 15%.
   • Requirements:
     • Apply the revenue recognition principle to determine when GE should recognize revenue from the new project.
     • Calculate the net present value (NPV) and internal rate of return (IRR) of the project.
     • Discuss the impact of revenue recognition on project profitability analysis.
     • Recommend whether to accept or reject the project based on revenue recognition considerations.
     • Evaluate the ethical implications of revenue recognition practices in capital budgeting decisions.