Project is expected to provide a positive cash flow

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Assume a project is expected to provide a positive cash flow of $14,000 per year for the next 5 years followed by a clean-up cost of 10,000 for year 6. Given the initial cost or dollar outlay today is $50,000, answer the following:

A) If the wacc = 8%, what is the NPV for the project?

(Show your work by providing the inputs and outputs for the financial calculator.)

B) If the wacc = 16%, what is the NPV for the project?

C) At what interest rate, would NPV equal 0? (Hint: calculate IRR)

(Show your work by providing the inputs and outputs for the financial calculator.)

Reference no: EM131533083

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