Question: Cold One Brewery is considering a project that has an initial after-tax outlay or after tax cost of $700,000. The respective future cash inflows from

Cold One Brewery is considering a project that has an initial after-tax outlay or after tax cost of $700,000. The respective future cash inflows from this four-year project for years 1 through 4 are: $195,000, $168,000, $230,000, $280,000, respectively. Cold one has a cost of capital of 11%. Will cold one accept this project?

Rejects this project because because NPV is below $-100,000
Rejects this project because the NPVis between -$20,000 and -$50,000
Accepts this project because the NPV is greater than the IRR
Accepts this project because the NPV is between $10,000 and $40,000

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