Estimates for long-term project it is considering

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Benson Designs has prepared the following estimates for a long-term project it is considering. The initial investment is $49,940, and the project is expected to yield after-tax cash inflows of $5000per year for 15 years. The firm has a cost of capital of 14 %.

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?

Reference no: EM131528603

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