Question
NPV and IRR Benson Designs has prepared the following estimates for a long-term project it is considering. The initial investment is $11,450, and the project
NPV and IRRBenson Designs has prepared the following estimates for a long-term project it is considering. The initial investment is $11,450, and the project will yield cash inflows of $3,000 per year for 6 years. The firm has a cost of capital of 12%.
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 Principles And Practice
Authors: Timothy Gallagher
7th Edition
0996095462, 978-0996095464
