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Given the following cash-flow information on Project D, answer the questions below. Year Project D 0 -$14,000 Initial investment 1 $4,800 2 $4,800 3 $4,800
Given the following cash-flow information on Project D, answer the questions below. Year Project D 0 -$14,000 Initial investment 1 $4,800 2 $4,800 3 $4,800 4 $4,800 Assuming an interest rate (discount rate) of 10% calculate the following: a) Calculate the net present value (NPV) of the project b) List the steps involved in calculating and interpreting the NPVs c) Calculate the internal rate of return of the project d) If the required rate of return is 10%, should the project be accepted or rejected? e) Calculate the pay back period
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