Question: Problem 8.1: (sample project evaluation) You are looking at a new project and have estimated the following cash flows, net income and book value data.

Problem 8.1: (sample project evaluation) You are looking at a new

Problem 8.1: (sample project evaluation) You are looking at a new project and have estimated the following cash flows, net income and book value data. Your required return for assets of this risk is 12%. (a) Find the NPV, (b) should the firm take on this project? Year 0: CF = -165,000 Year 1: CF = 63,120 Year 2: CF = 70,800 Year 3: CF = 91,080

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