Question: You are considering a project with an initial cash outlay of 50,000 SAR and expected free cash flows of 15,000 SAR at the end of

You are considering a project with an initial cash outlay of 50,000 SAR and expected free cash flows of 15,000 SAR at the end of each year for 5 years. The required rate of return for this project is 12 percent.

a. What is the projects' NPV?

b. What is the project's IRR?

c. Is the project acceptable based on NPV and IRR decision criteria.

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