Consider a project that costs $800,000 to start immediately and is expected to generate $125,00 a year for 10 years with no cash flows after that. If the firm's discount rate is 6%, should the firm undertake the project based on the IRR decision rule?

Build an Excel spreadsheet model to determine the What is the NPV of this project and IRR.  Round your answer to the nearest dollar.

Answer rating: 100% (QA)

To answer this question we need to perform both Net Present Value NPV and Internal Rate of Return IRR calculations However since we cannot use an actu... View the full answer