Q7

Here are the cash flows for a project under consideration: C1 -$7,370 +$5, 260 +$18,960 a. Calculate the project's net present value for discount rates of 0, 50%, and 100%. (Round your answers to the nearest whole dollar.) Discount Rate Net Present Value 0% 50% 100% b. What is the IRR of the project? (Do not round intermediate calculations. Enter your answer as a whole percent.) IRR %If you insulate your office for $21,000, you will save $2,100 a year in heating expenses. These savings will last forever. a. What is the NPV of the investment when the cost of capital is 4%? 10%? Cost of NPV Capital 4% 10% b. What is the IRR of the investment? (Enter your answer as a whole percent.) IRR %A project has a life of 13.5 years and a payback period of 13.5 years. Is the project NPV positive or negative? O Positive O Negative