Naseer Inc., is considering a project which will produce cash inflows of $145,000 a year for 2 years followed by $75,000 a year for the following 5 years. What is the NPV and IRR if the initial cost of

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Naseer Inc., is considering a project which will produce cash inflows of $145,000 a year for 2 years followed by $75,000 a year for the following 5 years. What is the NPV and IRR if the initial cost of the project is $400,000? Should the project be accepted or rejected? Why? The company uses 7.59% for evaluating projects. Use the frequency function to enter the 2 cash flows.

• Expert Answer

To calculate the net present value NPV and internal rate of return IRR of the project we can use the View the full answer