Question
Question #1 Consider the following potential investment, which has the same risk as a firms other projects: Time Cash Flow 0 ($400,000) 1 $100,000 2
Question #1
Consider the following potential investment, which has the same risk as a firms other projects:
| Time | Cash Flow |
| 0 | ($400,000) |
| 1 | $100,000 |
| 2 | $108,000 |
| 3 | $115,000 |
| 4 | $135,000 |
| 5 | $145,000 |
c. Based on the IRR and NPV rules, should this project be accepted? Be sure to justify your choice.
Please show all calculations needed to answer the question. Thanks,
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Financial Accounting SG
Authors: Meigs
7th Edition
0070422591, 978-0070422599
