Question
NPV and IRRBenson Designs has prepared the following estimates for a long-term project it is considering. The initial investment is $28 comma 110, and the
NPV and IRRBenson Designs has prepared the following estimates for a long-term project it is considering. The initial investment is $28 comma 110, and the project is expected to yield after-tax cash inflows of $4 comma 000per year for 11years. The firm has a cost of capital of 11%.
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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Modeling Financial Time Series With S PLUS
Authors: Eric Zivot, Jiahui Wang
2nd Edition
0387279652, 0387323481, 9780387279657, 9780387323480
