A company is considering a project
Question # 00627166
Posted By:
Updated on: 12/13/2017 08:40 AM Due on: 12/13/2017

1. A company is considering a project that has the following cash flows:C0 = -3,000,C1 = +500,C2 = +1,500, andC3 = +5,000, with a risk-adjusted discount rate of 15%.
A) Calculate the Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index, and the Payback of this project.
B) If you were the manager of the firm, will you accept or reject the project based on the calculation results above?

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Rating:
5/
Solution: A company is considering a project