Determine the internal rate of return? for the project

Assignment Help Financial Management

Reference no: EM131899602

NPV and IRR

Benson Designs has prepared the following estimates for a? long-term project it is considering. The initial investment is ?$36,780 and the project is expected to yield? after-tax cash inflows of ?$4,000 per year for 14 years. The firm has a cost of capital of 13?%.

a. Determine the net present value? (NPV) for the project.

b. Determine the internal rate of return? (IRR) for the project.

c. Would you recommend that the firm accept or reject the? project? (Yes or No)

Reference no: EM131899602

Questions Cloud

Develop requirements for a service management tool set : Using the Internet, research performance measurement tools. Develop requirements for a service management tool set.

What is the after-tax cash flow from the year : what is the after-tax cash flow (in millions of $) from the year 7 of production for the facility? Assume an effective tax rate of 36%.

Conduct a search using your favorite search engine : Various laws and regulations have been implemented to provide protection to employees and to the business. The authors in the text advised that workers'.

What are the components of a service level agreement : What are the steps required for implementing service management? What are the components of a service level agreement?

Determine the internal rate of return? for the project : Determine the net present value? (NPV) for the project. Determine the internal rate of return? (IRR) for the project.

Prepare a preliminary review for conducting the given audit : You are an internal auditor and you have been assigned an audit of the organizations software inventory. Prepare a preliminary review for conducting this audit.

How would you react after reading problem : Van's shoes has opened corporate stores in some markets. If you were an independent skate shop or a mall specialty store that carried Van's shoes.

Non-depreciable asset for ten-year production : You are purchasing a non-depreciable asset for a 10-year production, with a plan to sell this asset after these years of production.

New packaging facility in north carolina : Alcan invested $69 million in a new packaging facility in North Carolina. Assume an effective tax rate of 37%.

User Account

All Pages