Project Cash Flow
Company XYZ is considering a project with these cash flows:
YearCash Flow ($)
0-$5,500,000
1$3,500,000
2$3,000,000
3-$1,000,000
Requirements:
1.Create the NPV profile.
2.Calculate the IRR.
3.Determine the NPV at a 16% discount rate.
4.Should the project be accepted if the cost of capital is 16%?