Question
You have the chance to participate in a project that produces the following cash flows: Cash Flows ($) C 0 C 1 C 2 3,800
You have the chance to participate in a project that produces the following cash flows:
| Cash Flows ($) | ||
| C0 | C1 | C2 |
| 3,800 | 5,200 | 11,000 |
a. The internal rate of return is 14.96%. If the opportunity cost of capital is 14%, what is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)
NPV $
b. Would you accept the offer?
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Finance For Managers
Authors: Harvard Business School Press
1st Edition
1578518768, 978-1578518760
