Tamping plant projects required rate of return

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Reference no: EM13928409

ABC Manufacturing Company will invest in a stamping plant in Madison Ohio. The plant requires an initial outlay of $20,000,000. Net cash inflows from the project are expected to be $10,000,000 for the first year, $8,000,000 for year 2, and $5,000,000 for years 3 through 10, at which time the stamping plant will be sold for scrap for $5,000,000. If the stamping plant project's required rate of return is 18%: What is the projects IRR and NPV?

Reference no: EM13928409

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