Calculate the npv for the project and irr

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Reference no: EM132066600

You are evaluating a project for your company that has an open ended (perpetual) life. Cash flow in year one is expected to be $60,000, and this cash flow is expected to grow at a rate of 5% per year for 5 years. After this initial 5 year period, your expectations are that the cash flows for the project will remain constant. The initial investment for the project is expected to be $350,000. Your cost of capital is 12%. Using this information, calculate the NPV for the project. Calculate the IRR. Is it acceptable? Use Excel for this problem.

Reference no: EM132066600

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