What is the npv of the project

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A company can invest $1,600,000 in a capital budgeting project that will generate the following forecasted cash flows:

Year 1: $500,000

Year 2: $720,000

Year 3: $500,000

Year 4: $600,000

The firm has a 13% cost of capital:

a) What is the NPV of the project? AND Should the project be accepted?

b) What is the IRR of the project? AND Should the project be accepted?

c) What is the payback period for the project?

If the firm has a 20% cost of capital:

d) What is the NPV of the project? AND Should the project be accepted?

e) What is the IRR of the project? AND Should the project be accepted?

Reference no: EM131596937

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