A project has the following cash flows: Year Cash Flows, in $ 0 - 60,000 1...

  

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A project has the following cash flows: Year Cash Flows, in $ 0 - 60,000 1 12,000 2 14,000 3 4 16,000 18,000 a. Calculate the NPV if the appropriate required rate of return is 15%. Write down the NPV equation with numerical inputs. (16 points) b. Write down the IRR equation with numerical inputs. (6 points) c. Should the project be accepted? (8 points) A project has the following cash flows: Year Cash Flows, in $ 0 - 60,000 1 12,000 2 14,000 3 4 16,000 18,000 a. Calculate the NPV if the appropriate required rate of return is 15%. Write down the NPV equation with numerical inputs. (16 points) b. Write down the IRR equation with numerical inputs. (6 points) c. Should the project be accepted? (8 points)

Answer rating: 100% (QA)

SOLUTION a To calculate the NPV of the project we can use the following equation NPV CF0 CF11r1 CF21... View the full answer