Question: A company is considering a project which will initially cost $135000. It believes this project will generate a stream of cash flows of $20000 per

A company is considering a project which will initially cost $135000.

A company is considering a project which will initially cost $135000. It believes this project will generate a stream of cash flows of $20000 per annum forever. If the discount rate for this project is 9%, what is the project's NPV? Formula: O A NPV=(135000/0.09) - 20000 OB. NPV=(135000/0.09) - (20000/0.09) OC. NPV=(20000/0.09) - 135000 OD NPV=(20000/0.09) - (135000/0.09) Answer (round to the nearest dollar); What is the NPV rule? O A Accept project if NPV for independent projects. OC. Accept project if NPV> for mutually exclusive projects OD. Accept project if NPVO for independent projects. Should the project be accepted according to the NPV rule? O A Yes, because NPV0 OC. No, because NPV What is the IRR of the project? (Use 2 d.) Should the project be accepted if the cost of capital is 9% ? O A. Yes, because cost of capital > IRR Click to select your answers)

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