What is the net present value of this project

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Reference no: EM13261603

Dunia Construction Co. (DCC) is considering a new inventory system that will cost RM750,000. The system is expected to generate positive cash flows over the next four years in the amounts of RM350,000 in year one, RM325,000 in year two, RM150,000 in year three, and RM180,000 in year four. DCC's required rate of return is 8%.

i. What is the net present value of this project?
ii. What is the internal rate of return of this project?
iii. What is the modified internal rate of return of this project?

 

Reference no: EM13261603

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