Assume a project has the following forecasted cash

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Reference no: EM13381556

Assume a project has the following forecasted cash flows:

Year	Amount in $
0	-4,000
1	500
2	400
3	600
4	500
5	750

Answer the following:

Assuming that a project has a discount rate of 10 percent, calculate its NPV. Should the project be accepted?
Conduct a sensitivity analysis. Should the project be accepted now? Why?

Submit your answers in a 2- to 3-page Microsoft Word document and your calculations in a Microsoft Excel sheet.

Reference no: EM13381556

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