You have the chance to participate in a project that produces the following cash flows: Co -4,150 Cash Flows ($) G₁ C2₂ 1,350 3,000 a. If the opportunity cost of capital is 10%, what is the NPV of the project? b. What is the IRR of this project? Complete this question by entering your answers in the tabs below. Required A Required B If the opportunity cost of capital is 10%, what is the NPV of the project? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your final answer to the nearest whole number. NPV

You have the chance to participate in a project that produces the following cash flows: Co -4,150 Cash Flows ($) G₁ C2₂ 1,350 3,000 a. If the opportunity cost of capital is 10%, what is the NPV of the project? b. What is the IRR of this project? Complete this question by entering your answers in the tabs below. Required A Required B If the opportunity cost of capital is 10%, what is the NPV of the project? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your final answer to the nearest whole number. NPV

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter10: The Basics Of Capital Budgeting: Evaluating Cash Flows

Section10.6: Profitability Index (pi)

Problem 2ST

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