Investment Analysis
Project ABC has the following cash flows:
YearCash Flow ($)
0-$9,500,000
1$4,000,000
2$5,500,000
3-$2,500,000
Requirements:
1.Plot the NPV profile.
2.Compute the IRR.
3.Calculate the NPV using a 20% discount rate.
4.Decide if the project is viable if the cost of capital is 20%.