Question
NPV and IRRBenson Designs has prepared the following estimates for a long-term project it is considering. The initial investment is $42,810 ,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
$42,810 ,and the project is expected to yield after-tax cash inflows of$5,000per year for13years. The firm has a cost of capital of13%.
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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Internal Auditing Assurance And Advisory Services
Authors: Kurt R. Reding, Paul J. Sobel, Urton L. Anderson, Michael J. Head, Sridhar Ramamoorti, Mark Salamasick, Cris Riddle
5th Edition
1634541367, 978-1634541367
