Calculate the irr the project and use the npv decision rule

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A 3-year project, X, with an upfront cost of $12 million is expected to yield the following series of cash flows from operations: $2.40 million in year one, $2.80 million in year two, and $3.80 million in year three. At the end of year three, the project assets will be liquidated and sold for a net cash flow of $8.80 million. The required rate of return on the project is 12%.

Problem 1: Calculate the NPV of the project and use the NPV decision rule to decide whether to invest in the project.

Problem 2: Calculate the PI of the project and use the NPV decision rule to decide whether to invest in the project.

Problem 3: Calculate the IRR the project and use the NPV decision rule to decide whether to invest in the project.

Reference no: EM132993266

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