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: The
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 13.8%. The project life is 6 years. The initial cost is $15,555. In years 1, 2, 3 and 4 you will receive cash inflows of $3,555 each year. You know the cash flows in years 5 and 6 are equivalent, but the amount is not on file. The appropriate discount rate is 10.5%. Part A: What are the cash flows in years 5 and 6 of the project that the IRR is qual to 13.8? A- Insufficient information B- 5236 C- 5096 D- 5074 E- 3811 Part B: What is the NPV of the project? a. insufficient info b. 15,555 c. 4620 d. 3490 e. 1647
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