Confirm your recommendation using the npv rule

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a. A project has cash flows of -$1,000, -$2,000, -$3,000, +$4,000, and +$5,000 in consecutive years. Your cost of capital is 20% per annum. Use the IRR rule to determine whether you should take this project. Confirm your recommendation using the NPV rule.

b. A project has cash flows of +$200, -$180, -$40 in consecutive years. The prevailing interest rate is 5%. Should you take this project?

Reference no: EM131234314

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