Calculate the project irr

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A Mining Company is considering investing in a new mining project. The firm's cost of capital is 12 percent and the project is expected to have an initial after-tax cost of $5,000,000. Furthermore, the project is expected to provide after-tax operating cash flows of $2,500,000 in year 1, $2,300,000 in year 2, $2,200,000 in year 3, and ($1,300,000) in year 4?

(a) Calculate the project's NPV.

(b) Calculate the project's IRR.

(c) Should the firm make the investment? Please include explanation

Reference no: EM132799614

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