Company A is considering an investment in a new project that requires an initial investment of $100,000.
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Company A is considering an investment in a new project that requires an initial investment of $100,000. The project will generate cash flows of $25,000, $35,000, and $40,000 in years 1, 2, and 3, respectively. The company’s required rate of return is 10%. Determine whether the project should be accepted or rejected based on the net present value (NPV) and internal rate of return (IRR) methods.
Related Book For
Valuation The Art and Science of Corporate Investment Decisions
ISBN: 978-0133479522
3rd edition
Authors: Sheridan Titman, John D. Martin
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