Assume a project has the following forecasted cash flows

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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: EM13482936

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