How many percent return-loss will your company

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A project will cost $4,819,724 and its expected to earn zero after one year, but $3,009,913 at the end of the second year, and $2,779, 333 at the end of the third year. Your company currently has borrowing worth $73,789,532 for which the company is paying 7.4% per year interest, and the owners of the company have invested a total of $149,815,110.40; and they generally want a return of 15% per year. Corporate tax rate is at 37%. Is this a good project or not? How many percent return/loss will your company have if you go ahead with the project?

Reference no: EM13803367

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