Question: Please, solve using Excel 1) A company is considering a 4-year project with the following cash flows: C0 =-$20,000 C1 =C2 =C3 =C4 =$7,000 If
Please, solve using Excel
1) A company is considering a 4-year project with the following cash flows:
C0 =-$20,000 C1 =C2 =C3 =C4 =$7,000
If the companys opportunity cost of capital is 12%, then compute the following for the project:
a) the projects NPV
b) the projects IRR
c) determine if the project will have more than 1 IRR
d) The projects PI
e) Should the project be rejected because its payback period is longer than two years?
f) Should the project be rejected because its IRR is greater than its required rate of
return?
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