Question
NPV and IRR Benson Designs has prepared the following estimates for along-term project it is considering. The initial investment is $23,430, and the project is
NPV and IRRBenson Designs has prepared the following estimates for along-term project it is considering. The initial investment is $23,430, and the project is expected to yield after-tax cash inflows of $5,000 per year for 7 years. The firm has a cost of capital of 15%
a.Determine the net present value(NPV) for the project.
b.Determine the internal rate of return(IRR) for the project.
c.Would you recommend that the firm accept or reject theproject?
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
8th edition
013342362X, 978-0133423624
