Question
NPV and IRRBenson Designs has prepared the following estimates for a long-term project it is considering. The initial investment is $29,880, and the project is
NPV and IRRBenson Designs has prepared the following estimates for a long-term project it is considering. The initial investment is $29,880, and the project is expected to yield after-tax cash inflows of $3,000 per year for 15 years. The firm has a cost of capital of 14%.
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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Authors: Braun Schweiger
1st Edition
1493700391, 978-1493700394
