You've estimated the following cash flows (in $) for a project: A B 1 Year Cash flow 2 0 -3,000 3 1 900 4 2 1,300 5 3 1,606 The required return is 8.5%. 1. What is the IRR for the project? 2. What is the NPV of the project? 3. What should you do? Check all that apply: Accept the project based on its IRR Accept the project based on its NPV Reject the project based on its IRR Reject the project based on its NPV
You've estimated the following cash flows (in $) for a project: A B 1 Year Cash flow 2 0 -3,000 3 1 900 4 2 1,300 5 3 1,606 The required return is 8.5%. 1. What is the IRR for the project? 2. What is the NPV of the project? 3. What should you do? Check all that apply: Accept the project based on its IRR Accept the project based on its NPV Reject the project based on its IRR Reject the project based on its NPV
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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You've estimated the following cash flows (in $) for a project:
| A | B | |
| 1 | Year | Cash flow |
| 2 | 0 | -3,000 |
| 3 | 1 | 900 |
| 4 | 2 | 1,300 |
| 5 | 3 | 1,606 |
The required return is 8.5%.
1. What is the
2. What is the
3. What should you do? Check all that apply:
Accept the project based on its IRR
Accept the project based on its NPV
Reject the project based on its IRR
Reject the project based on its NPV
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