Question: Recomputed the net present value of the project based on the cost of capital you found. Do you still believe that your earlier recommendation for

Recomputed the net present value of the project based on the cost of capital you found. Do you still believe that your earlier recommendation for accepting or rejecting the project was adequate? Why or why not?

Rate of return .... 15%

Year 0.... $3,000,000

Year 1 .... $1,100,000

Year 2.... $1,450,000

Year 3.... $1,300,000

Year 4.... $950,000

1. What is the project’s IRR?

2. What is the project’s NPV?

3. Should the company accept this project and why (or why not)?

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