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You are considering an investment for which you require a 10.2 percent rate of return. The investment costs $21,125 and will produce cash inflows of
You are considering an investment for which you require a 10.2 percent rate of return. The investment costs $21,125 and will produce cash inflows of $4,500 in year 1, $4,800 for year 2 and $5,200 for years 3 $5,250 for year 4; $5,575 for year 5 and $5,520 for year 6. Should you accept this project based on its internal rate of return? Why or why not? To convince your boss complete the Payback period for the project, the NPV of the project and the Profitability of the project. Do these answers support the IRR answer?
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