Determine the npv and the irr for the project

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Butler Products has prepared the following estimates for an investment it is considering. The initial cash outflow is $20,000, and the project is expected to yield cash inflows of $4,400 per year for seven years. The firm has a 10 percent cost of capital.

a. Determine the NPV for the project.

b. Determine the IRR for the project.

c. Would you recommend that the firm accept or reject the project? Explain your answer.

Reference no: EM131328626

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