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You have decided to participate in a tender of supplying personal computers to the local high school. Buying the participation forms of the tender costs

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You have decided to participate in a tender of supplying personal computers to the local high school. Buying the participation forms of the tender costs $1000. Further, you hired a financial consultant to evaluate this project, and paid him a fee of $3000. The financial consultant has estimated that if you win the tender, you will have to invest $12,000 immediately. He also estimates that the project will generate a positive cash flow of $4,000 each year, for a period of 5 years. Assuming a discount rate of 10%, calculate the projects NPV and IRR. Should you take the project?

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Participating in a Tender 2 Discount rate 3 Financial Consultant fee 4 Tender's participation fee 6 Cash flow 1096 $3,000 ,000unk costs $12,000 $4,000 7 Tax rate 8 9 10 Cash flows no Tax Cash flows with tax 12 13 14 15 16 NPV 17 18 Rate

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