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Your firm has an opportunity to make an investment of $50,000. Its cost of capital is...

Your firm has an opportunity to make an investment of $50,000. Its cost of capital is 12 percent. It expects after-tax flows (including the tax shield from depreciation) for the next 5 years to follows: The manufacturer of high-quality flatbed scanners is trying to decide what price to set for its product. The costs of production and the demand for the product are assumed to be as follows:

Year 1 $10,000

Year 2 $20,000

Year 3 $30,000

Year 4 $20,000

Year 5 $5,000

a. Calculate the NPV

b. Calculate the IRR (to the nearest percent) Would you accept this project.

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