Would you accept the project using NPV as your decision criterion? Why or why not?

Consider a capital project with the following cash flows:

What is the net present value of this project if the required return is 10%? Would you accept the project using NPV as your decision criterion? Why or why not?

 

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Consider a capital project with the following cash flows: Year 1 Cash Flow 0 -$24,000 $7,000 2 $10,000 3 (This info is for the 4 $11,000 $7,800 Consider a capital project with the following cash flows: Year 1 Cash Flow 0 -$24,000 $7,000 2 $10,000 3 (This info is for the 4 $11,000 $7,800

Answer rating: 100% (QA)

To calculate the net present value of the project we need to discount each cash flow to its present ... View the full answer