Question
NPV and IRR Benson Designs has prepared the following estimates for a long-term project it is considering. The initial investment is $54,300, and the project
NPV and IRRBenson Designs has prepared the following estimates for a long-term project it is considering. The initial investment is $54,300, and the project is expected to yield after-tax cash inflows of $6000 per year for 14 years. The firm has a cost of capital of 8%.
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 the project?
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Financial Management For Public, Health, And Not-for-Profit Organizations
Authors: Steven A. FinklerDaniel L. Smith, Thad D. Calabrese
6th Edition
978-1506396811, 150639681X
