# Benson Designs has prepared the following estimates for a longterm project it is considering. The initial investment

## Question:

a. Determine the net present value (NPV) for the project.

b. Determine the internal rate of return (IRR) for the project.

c. Would you recommend that the firm accept or reject the project? Explain your answer.

Net Present Value

What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Internal Rate of Return

Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...

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**Related Book For**

## Principles Of Managerial Finance

**ISBN:** 978-0136119463

13th Edition

**Authors:** Lawrence J. Gitman, Chad J. Zutter