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28 Sep 2019
The YayForSummerBreak Company wants to calculate the net present value (NPV) and internal rate of return (IRR) on the following project:
Cost is $26,000 today, with end-of-year cash flows of $12,000, $10,000, and $7,500, Years 1 through 3 respectively for three years. Assume the cost of capital is 8%. SHOW ALL WORK on the *******TI BAII Plus Calculator****** FOR FULL CREDIT using the Cash Flow (CF) register.
a) (10 pts) NPV? b) (5 pts) IRR? c) (4 pts) Should the project be accepted or rejected, and why?
The YayForSummerBreak Company wants to calculate the net present value (NPV) and internal rate of return (IRR) on the following project:
Cost is $26,000 today, with end-of-year cash flows of $12,000, $10,000, and $7,500, Years 1 through 3 respectively for three years. Assume the cost of capital is 8%. SHOW ALL WORK on the *******TI BAII Plus Calculator****** FOR FULL CREDIT using the Cash Flow (CF) register.
a) (10 pts) NPV? b) (5 pts) IRR? c) (4 pts) Should the project be accepted or rejected, and why?
Bunny GreenfelderLv2
28 Sep 2019