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You are offered the chance to participate in a project that produces the following cash flows: C 0 C 1 C 2 + $ 5,900
You are offered the chance to participate in a project that produces the following cash flows:
C0 | C1 | C2 | ||||||||||||
+ | $ | 5,900 | + | $ | 4,450 | $ | 12,800 | |||||||
The internal rate of return is 14.3%.
a. If the opportunity cost of capital is 13%, what is the net present value of the project? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)
b. Will you accept the offer?
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