Question
You are attempting to reconstruct a project analysis of a co-worker who was fired for flunking FI 3300. You have found the following information :
You are attempting to reconstruct a project analysis of a co-worker who was fired for flunking FI 3300. You have found the following information
: The IRR is 14%
. The project life is 6 years.
The initial cost is $16,000.
In years 1, 2, 3 and 4 you will receive cash inflows of $3,000.
You know the cash flows in years 5 and 6 are equivalent, but the amount is not on file.
The appropriate discount rate is 10%.
What is the NPV of the project? a. $2,335.25 b. $5,750.35 c. ($1,250) d. $2,000 e. None of the above
- Please explain how the cash flow is calculated for the 5 and 6 years= 7445
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