Describe at least three different ways of whether

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Describe at least 3 different ways of whether or not the following project should be accepted or rejected (NPV, IRR & Payback for example).

Project has a 6 years life.

Discount Rate =8%

Cash outlay today to develop project=$300,000.00

Free cash flow generated by project in years:

Year 1=40,000

Year 2=40,000

Year 3=50,000

Year 4=30,000

Year 5=70,000

Year 6=100,000

Salvage value of PP&E at end of project=20,000

Should the project be accepted or rejected?

Use 3 methods to determine acceptance or rejection of the project

Reference no: EM13874756

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