Question
Project Evaluation Year 0: Cash Flow: -$6,000,000 Year 1: Cash Flow: $3,500,000 Year 2: Cash Flow: $3,500,000 Year 3: Cash Flow: -$2,000,000 Requirements: 1.Plot the
Project Evaluation
•Year 0: Cash Flow: -$6,000,000
•Year 1: Cash Flow: $3,500,000
•Year 2: Cash Flow: $3,500,000
•Year 3: Cash Flow: -$2,000,000
Requirements:
1.Plot the NPV profile for this project.
2.Calculate the IRR.
3.Determine the NPV at a discount rate of 14%.
4.If the cost of equity is 14%, should you accept the project?
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
9th edition
978-1285183244, 128518324X, 978-1285779263, 1285779266, 978-1285183237
