Question
The YayForSummerBreak Company wants to calculate the NPV and IRR on the following project: Cost is $25,000 today, with end-of-year cash flows of $12,000, $10,000,
The YayForSummerBreak Company wants to calculate the NPV and IRR on the following project: Cost is $25,000 today, with end-of-year cash flows of $12,000, $10,000, and $7,500, Years 1 through 3 respectively for three years. Assume the cost of capital is 8%. SHOW ALL WORK on the TI BAII Plus Calculator FOR FULL CREDIT.
a) (10 pts) NPV?
b) (5 pts) IRR?
c) (2 pts) Do you accept or reject the project, and why?
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Reinventing The CFO How Financial Managers Can Transform Their Roles And Add Greater Value
Authors: Jeremy Hope
1st Edition
1591399459, 978-1591399452
