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Will you be interested in the project based on the npv rule

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Question - Consider a 4-year project with an initial investment of $10,000. A cash amount of $23,100 will be generated after 2 years, and the project will be terminated with fund injection of $13,300 at the end of year 4.

(a) Draw a graph of the NPV versus the required rate of return for the project.

(b) If you have a required rate of return of 8% per annum, will you be interested in the project based on the NPV rule? Will the IRR rule work in this problem?

Reference no: EM133151413

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