Question: A company is considering a project which will initially cost $117000. It believes this project will generate a stream of cash flows of $30000 per
A company is considering a project which will initially cost $117000. It believes this project will generate a stream of cash flows of $30000 per annum forever If the discount rate for this project is 9%, what is the project's NPV? Formula O A NPV=(117000/0.09) - 30000 OB. NPV (117000/0.09) - (30000/0.09) OC. NPV=(30000/0.09) - 117000 OD. NPV=(30000/0.09) - (117000/0 09) Answer (round to the nearest dollar) ring with What is the NPV rule? O A. Accept project if NPV O for independent projects OB. Accept project if NPV> for mutually exclusive projects OC. Accept project if NPV>0 for independent projects. OD. Accept project if NPV OC. No, because NPV What is the IRR of the project? (Use 2 dp) Should the project be accepted if the cost of capital is 9%? A. No, because cost of capital IRR B. Yes, because cost of capital
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