NPV and IRR Benson Designs has prepared the following estimates for a long-term project it is considering. The initial investment is $33,960, and the project is expected to yield after-tax cash inflows of $4,000 per year for 13 years. The firm has a cost of capital of 14%. a. Determine the net present value (NPV) for the project. b. Determine the internal rate of return (IRR) for the project. c. Would you recommend that the firm accept or reject the project? The ND V of the proiect is S (Round to the nearest cent )

NPV and IRR Benson Designs has prepared the following estimates for a long-term project it is considering. The initial investment is $33,960, and the project is expected to yield after-tax cash inflows of $4,000 per year for 13 years. The firm has a cost of capital of 14%. a. Determine the net present value (NPV) for the project. b. Determine the internal rate of return (IRR) for the project. c. Would you recommend that the firm accept or reject the project? The ND V of the proiect is S (Round to the nearest cent )

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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