Suppose that a project required an initial cash investment of $24,000 and was expected to generate inflows of $10,000, $10,000, and $10,000 for the next three years. Further, assume that our company's required rate of return for new projects is 12%. Is this project worth funding? Would it be a good investment if the company's required rate of return were 15%? Use the following figures to determine the answers to these questions: 

Cash investment = $24,000 

Year 1 inflow = $10,000 

Year 2 inflow = $10,000 

Year 3 inflow = $10,000 

Required rate of return = 12%

Answer rating: 100% (QA)

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