Would you invest in the project

Reference no: EM131937021

Question: Assume that you have an investment opportunity that will produce cash flows (with certainty) following the pattern below. The investment requires a $500 investment today. Year Cash Flow 1 $600 2 $300 3 $300 4 $200 5 -1000

a. Use Excel to graph the NPV of these cash flows as a function of the discount rate.

b. Would you invest in this project if the opportunity cost were 20%? Explain why in a sentence or two.

Reference no: EM131937021

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