Project Appraisal
•Year 0: -$8,500,000
•Year 1: $3,000,000
•Year 2: $4,000,000
•Year 3: -$1,500,000
Requirements:
1.Create the NPV profile.
2.Calculate the IRR.
3.Find the NPV at a 14% discount rate.
4.Assess if the project should be accepted with a 14% cost of equity.