Question: Operating Cash Inflows Year Operating Cash Inflows 0 ($5,000) (Initial outlay) 1 $2,000 2 $2,000 3 $2,000 4 $2,000 5 $2,000 Given the information in
Operating Cash Inflows
Year | Operating Cash Inflows |
0 | ($5,000) (Initial outlay) |
1 | $2,000 |
2 | $2,000 |
3 | $2,000 |
4 | $2,000 |
5 | $2,000 |
- Given the information in Table 1 and a 10 percent cost of capital, compute the net present value (NPV).
- Calculate the internal rate of return (IRR).
- Determine the payback period.
- Should the project be accepted based on NPV and IRR criteria?
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