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Year Cash Flow to Equity ($) 0 -2,000,000 1 1,500,000 2 2,000,000 3 -1,000,000 Requirements: Calculate the Net Present Value (NPV) of the project if
Year | Cash Flow to Equity ($) |
0 | -2,000,000 |
1 | 1,500,000 |
2 | 2,000,000 |
3 | -1,000,000 |
Requirements:
- Calculate the Net Present Value (NPV) of the project if the cost of equity is 14%.
- Determine the Internal Rate of Return (IRR) for this project.
- Should the project be accepted if the cost of equity is 14%?
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