Question
I need your to make a decision. I am considering making a long term investment on a project. My initial investment would be $18,250 but
I need your to make a decision. I am considering making a long term investment on a project. My initial investment would be $18,250 but the after tax cash inflows it should deliver back to my company would be $4,000 per year for the next 7 years. It would cost me (cost of capital) 10% to raise the money for my initial investment.
1What would the net Present Value (NPV) be for this project?
2What would my Internal Rate of Return (IRR) be?
3What would you tell me to do?
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
