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Intro You've estimated the following cash flows (in $) for a project: A B 1 Year Cash flow 2 0 -3,900 3 1 900 4

Intro

You've estimated the following cash flows (in $) for a project:

A B
1 Year Cash flow
2 0 -3,900
3 1 900
4 2 1,300
5 3 2,607

The required return is 8.5%.

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Part 1

What is the IRR for the project?

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Part 2

What is the NPV of the project?

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Part 3

What should you do?

Check all that apply:

Accept the project based on its NPV

Reject the project based on its NPV

Accept the project based on its IRR

Reject the project based on its IRR

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