Question: You are considering a project whose cash flows are given below. A B 3 Discount rate 25% 4 5 Year cash flows 6 0 -1000
You are considering a project whose cash flows are given below.
A | B | |
3 | Discount rate | 25% |
4 | ||
5 | Year | cash flows |
6 | 0 | -1000 |
7 | 1 | 100 |
8 | 2 | 200 |
9 | 3 | 300 |
10 | 4 | 400 |
11 | 5 | 500 |
12 | 6 | 600 |
Calculate the present value of the future cash flows of the project?
Calculate the net present value of the project?
Calculate the project's internal rate of return?
Should you undertake the project?
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Solution To calculate the present value of the future cash flows of the project we need to discount each cash flow using the given discount rate The f... View full answer
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