What is the net present value of the project

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Reference no: EM131245315

1.Calculate the internal rate of return on the following set of cash flows:

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2.The Amber gast Corporation is considering a project that has a three-year life and costs $1200. It would save $360 per year in operating costs and increase revenue by $200 per year. It would be financed with a three-year loan with the following payment schedule (the annual rate of interest is 5%).

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If the company has a 10% after-tax weighted average cost of capital, has a 40% tax rate, and uses straight-line depreciation, what is the net present value of the project?

Reference no: EM131245315

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