Determining aftertax cash flows

Reference no: EM1370135

Cost of capital is 12%. Its expects aftertax cash flows (including the tax shield from depreciation) for the next 5 years are:

Year 1 $ 10,000

Year 2 20,000

Year 3 30,000

Year 4 20,000

Year 5 5,000

a) Calculated the NPV.

b) calculate the IRR

c) Would you accept the project?

Reference no: EM1370135

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