Question: Benson Designs has prepared the following estimates for a longterm project it is considering. The initial investment is $18,250, and the project is expected to

Benson Designs has prepared the following estimates for a longterm project it is considering. The initial investment is $18,250, and the project is expected to yield after-tax cash inflows of $4,000 per year for 7 years. The firm has a 10% cost of capital.
a. Determine the (NPV) for the project.
b. Determine the (IRR) for the project.
c. Would you recommend that the firm accept or reject the project? Explain your answer.

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