Question

What are the Net Present Value and Internal Rate of Return for the following cash flows...

What are the Net Present Value and Internal Rate of Return for the following cash flows - assuming a 3.5% discount rate?

Year 0: ($35,900)

Year 1: $20,750

Year 2: ($16,750)

Year 3: $32,100

Year 4: $12,525

Year 5: $18,220

Is the project profitable on a discounted basis? Is it something we would want to pursue as an organization?

Homework Answers

Answer #1

As both NPV and IRR are negative project is not recommended.

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