Capital budgeting project-what are npv-irr for the project

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You are evaluating a capital budgeting project. The appropriate discount rate for the project is 12.5%. The initial cost of the project will be $200,000. The project is expected to produce positive after tax cash flows of $60,000 per year for the next 4 years. Winding up of the project will produce an additional after tax positive cash flow of $15,000 in the fourth year. What are the NPV, IRR for the project? Should this project be accepted or not and why?

Reference no: EM131606270

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