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If you had a project that cost 40,000 and is expected to yield the follow cash flow over the next three years Year 1: 10,000
- If you had a project that cost 40,000 and is expected to yield the follow cash flow over the next three years
Year 1: 10,000
Year 2: 20,000
Year 3: 5,000
Year 3: -3,000 End of Project payment has to be paid
The cost of capital is 12%
- Find the NPV and profitability index on this project?
- Would you accept or reject this project and why?
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