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Initial Investment: $6,000,000 Year 1: $2,000,000 Year 2: $2,000,000 Year 3: $1,000,000 Year 4: $2,000,000 Requirements: Plot the NPV profile for this investment. Calculate the

  • Initial Investment: $6,000,000
  • Year 1: $2,000,000
  • Year 2: $2,000,000
  • Year 3: $1,000,000
  • Year 4: $2,000,000

Requirements:

  1. Plot the NPV profile for this investment.
  2. Calculate the IRR.
  3. Calculate the NPV at a discount rate of 9%.
  4. Should the project be accepted if the discount rate is 9%?

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