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You are evaluating a proposed project for your company. The project is expected to generate the following end-of-year cash flows: 0 1 2 3 4
You are evaluating a proposed project for your company. The project is expected to generate the following end-of-year cash flows: 0 1 2 3 4 6 7 8 5 -$3,000 $300 $300 $600 $600 $800 $800 $800 $400 You have been told you should evaluate this project with an interest rate of 9%. What is the project's NPV? O $151.80 O $235.97 O $51.43 O $119.39 O $201.99 Your group leader has now told you that the risk of the project was understated before. As a result, she tells you to recalculate the project's NPV with an 11% interest rate. Wh the new NPV? O -$22.97 O -$104.13 O $115.38 O -$190.92 O $60.74 When the project was first evaluated at 9%, you would have advised that the company company. But now with an 11% interest rate, you will advise the company to the project because it the project because it value for the value for the company. Calculate the project's internal rate of return (IRR). O 11.52% O 10.81% O 9.99% O 10.01% O 9.41%
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