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Calculate the npv and irr

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Your firm has an opportunity to make an investment of $50,000. Its cost of capital is 12 percent. It expects after-tax flows (including the tax shield from depreciation) for the next 5 years to follows: The manufacturer of high-quality flatbed scanners is trying to decide what price to set for its product. The costs of production and the demand for product are assumed to be as follows:

Year 1

$10,000

Year 2

$20,000

Year 3

$30,000

Year 4

$20,000

Year 5

$5,000
  1. Calculate the NPV
  2. Calculate the IRR (to the nearest percent)
  3. Would you accept this project.

Reference no: EM133084329

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