Question: Question 18 3 pts A project has an initial cost of $45,000. The incremental inflows associated with the project are $20.000 in year one. $25,000
Question 18 3 pts A project has an initial cost of $45,000. The incremental inflows associated with the project are $20.000 in year one. $25,000 in years two and three, and $15,000 in year four. All cash inflows are at the end of the year. The appropriate discount rate for this project is 11% Should the company accept the project? No, the project has a negative NPV There's a conflict here between IRR and NPV so we don't know Only if it is independent of other projects Yes, the project will add value to the form
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