Question
NPV and IRRBenson Designs has prepared the following estimates for a long-term project it is considering. The initial investment is 39,130 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 39,130 and the project is expected to yield after-tax cash inflows of $7,000 per year for 9 years. The firm has a cost of capital of 9%.
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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Public Finance
Authors: Steven G. Medema, Carl Sumner Shoup
1st Edition
0202307859, 978-0202307855
