You are analyzing a project and have prepared the following data:
 



a. Based on the net present value of this project, should you reject or accept this project?

b. What is the internal rate of return (IRR) of this project? Should you reject or accept this project? 

Transcribed Image Text:

Cash flow -S169,000 S 46,200 S 87,300 S 41,000 S 39,000 Year 1 2 3 4 Required payback period Required AAR Required return 2.5 years 7.25 percent 8.50 percent Cash flow -S169,000 S 46,200 S 87,300 S 41,000 S 39,000 Year 1 2 3 4 Required payback period Required AAR Required return 2.5 years 7.25 percent 8.50 percent

Answer rating: 100% (QA)

Part A Discount Factor 1 1 rn where r required rate of return n number of years Discounted Cashflows ... View the full answer