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What is estimated project irr using interpolation method

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Brine Industries has a WACC of 10% and is considering an investment project that has the following cash flows:

Year       Cash Flow

0          -$600

1          $400

2          $300

Question 1) What's the project's NPV given the WACC is 10%?

Question 2) What's the project's NPV if WACC is 20%?

Question 3) Based on the calculated NPV's in questions 1) and 2), what's the estimated project's IRR using interpolation method?

Question 4) Should the project be accepted based on IRR? Why?

Question 5) Should the project be accepted based on NPV?Why?

Reference no: EM132556122

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