Question
Project A has an initial cost of $180,000 and would produce cash flows of $60,000 per year for the first two years of the
Project A has an initial cost of $180,000 and would produce cash flows of $60,000 per year for the first two years of the project and $80,000 per year for the last two years of the project. The required return for the project is 12%. What is the Net Present value for project A? What is the Internal Rate of Return for project A? Should the project be undertaken?
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Get StartedRecommended Textbook for
Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs
10th edition
133052311, 978-0133052312
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