Question: Geronimo, Inc is considering a project that has an initial after-tax outlay or after tax cost of $220,000. The respective future cash inflows from its
Geronimo, Inc is considering a project that
has an initial after-tax outlay or after tax cost of $220,000. The
respective future cash inflows from its four year project for years
1 through 4 are: $50,000, $60,000, $70,000 and $80,000. Geronimo
uses the net present value method and has a discount rate of 11%.
Will Geronimo accept this project?
Show your work! What is the amount!
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