Problem $7$

Intro

A project requires an initial investment of $$45,000$ and will then generate project

cash flows of $$18,000$ every year for $4$ years. The project has a required return of

$12\%.$

$*$Part $1$

What is the project's NPV $($in $$)?$

$*$Part $2$

What is the project's internal rate of return?

$*$Part $3$

Should you accept this project?

No

Yes, based on IRR

Yes, based on both IRR andNPV