Firm is evaluating acceptability of investment

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Question 1.

A firm is evaluating the acceptability of an investment that costs $90,000 and is expected to generate annual cash flows equal to $20,000 for the next six years. If the firm's required rate of return is 10 percent, what is the NPV of the project? Should the project be purchased?

Question 2.

What is the IRR of a project that costs $45,000 if it is expected to generate $15,047 per year for five years?

Reference no: EM133239371

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