The investment cost is RO 50,000. This project generates five future cash flows. The first cash flow
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Question:
The investment cost is RO 50,000. This project generates five future cash flows. The first cash flow is RO 18,000 and increases by 12% each year for the remaining years. The cost of capital of the project is 8%. Explain your answer in Excel.
1- Find the NPV ?
2- Find the IRR of this project. Should you take the investment? why?
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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