What is the net present value of this project

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Reference no: EM132207298

Question - Kohinoor industries is evaluating a proposed capital budgeting project that will require an initial investment of $112,000. The project is expected to generate the following net cash flows:

Year 1 = $36,400

Year 2 = $50,300

Year 3 = $44,400

Year 4 = $40,900

Assume the required rate of return on this project type is 10%. What is the net present value of this project?

Suppose Kohinoor Industries has enough capital to fund the project, and the project is not competing for funds with another project should they accept or reject the project?

Reference no: EM132207298

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