Assume the following for a project under evaluation:
project’s life is 4 years.
total time zero, initial cost of $55,000.
total net operating cash flow each year is $15,000.
addition to the terminal year operating cash flow,
there is a nonoperating,
terminal year cash flow of
What is the project’s IRR? Accept or reject the project?
Again, assume the cost of capital for a project of this risk
7%; indifferent to accept or reject
Net Present Value Present Value of Cash Inllow , Calculated By = Cash Inflow ‘ 1 [[1+rate]“n Internal Rate of Return : Cash lluwl in million $1 PresentValue @796 Wuft‘asll ﬂaws Calculatiun…