Based on IRR analysis should the firm invest in this project

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Reference no: EM13944997

Suppose a beverage company with a 13.4879% WACC is considering an investment in Stella’s Lemonade Stand. The project has the following cash flows:

She needs $165,000; at time zero but expect the following cash flows:

Year 1: $63,120;

Year 2: $70,800;

Year 3: $91,080;

Based on NPV analysis should the firm invest in this project?

Compute IRR

Based on IRR analysis should the firm invest in this project?

Reference no: EM13944997

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