Draw a present value profile

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Reference no: EM132635013

Draw a present value (PV) profile of the following project and determine the IRR(s).

Is the project acceptable at 10% cost of capital?

Year 0: -4,000$ | Year 1: +10,200$ | Year 2: -6,300$

Observation: if you find cumbersome to draw the PV profile you can only describe it in words, namely:

(a) What's on X axes, (b) what's on the Y axes, (c) form of the graph, (d) where it intercepts the X axes etc.

Reference no: EM132635013

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