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You have the chance to participate in a project that produces the following cash flows: Cash Flows ($) C 0 C 1 C 2 4,900
You have the chance to participate in a project that produces the following cash flows:
Cash Flows ($) | ||
C0 | C1 | C2 |
4,900 | 4,100 | 10,900 |
a. The internal rate of return is 13.07%. If the opportunity cost of capital is 13%, 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?
Yes | |
No |
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