Suppose you are analyzing a potential project for your small business. It will cost you $75,000...

 

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Suppose you are analyzing a potential project for your small business. It will cost you $75,000 now to purchase all the assets necessary, and you expect the project to yield $25,000 in year one, $35,000 in year 2, and $45,000 in year 3. The cost of capital for this project is 6.0%. a. What are the project's cash flows? CFO= CF1= CF2= CF3= b. What is the project's net present value (NPV)? c. What is the project's IRR? d. Should you go ahead with the project? Why, or why not? Suppose you are analyzing a potential project for your small business. It will cost you $75,000 now to purchase all the assets necessary, and you expect the project to yield $25,000 in year one, $35,000 in year 2, and $45,000 in year 3. The cost of capital for this project is 6.0%. a. What are the project's cash flows? CFO= CF1= CF2= CF3= b. What is the project's net present value (NPV)? c. What is the project's IRR? d. Should you go ahead with the project? Why, or why not?