Proposed project based on weighed average cost of capital

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Reference no: EM131263890

The Management of Ink’s Inc. is evaluating the following investment opportunity which will cost the firm $81,383.53 if undertaken. In addition, it is projected that the following after-tax returns will be generated from the project.

Year Cash Flow

1 $20,000

2 25,000

3 30,000

4 35,000

What will the NPV be on the proposed project based on a weighed average cost of capital of 9%? Additionally, what will the project’s IRR be?

Reference no: EM131263890

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