You've estimated the following cash flows (in $) for a project:

	A	B
1	Year	Cash flow
2	0	-4,000
3	1	900
4	2	1,300
5	3	2,828

The required return is 8.5%. 

Part 1

What is the IRR for the project?

Part 2

What is the NPV of the project?

Part 3

What should you do?

Check all that apply:

Reject the project based on its IRR

Reject the project based on its NPV

Accept the project based on its IRR

Accept the project based on its NPV

Answer rating: 100% (QA)

Lets calculate the IRR and NPV for the project first Part 1 Calculate the IRR Internal Rate of Retur... View the full answer