Determine the internal rate of return for the project

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NPV and IRR.

Gigantic Group has prepared the following estimates for a long-term expansion project. The initial investment is exist 248, 250, and the project is expected to yield after-tax cash inflows of exist 65,000 per year for 5 years. The firm has an 8% cost of capital.

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

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

Problem c. Would you recommend that the -firm accept or reject the project?

Reference no: EM132809646

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