Shouldthe project be accepted using the IRR and NPV methods?

WACC 9%

Cost of machine2 million

Working capital needed at time 0 is $250,000 none is recovered at projects end

Cash flow year 1 $500,000

Cash Flow years 2 through 4 $700,000

Salvage value end of year 4 is $300,000

Answer rating: 100% (QA)

Based on both NPV and IRR the project appears to be acceptable NPV Net Present Value 2929709 A posit... View the full answer