What is his projects irr

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Reference no: EM131328648

A certain project has the following stream of cash flows:

Year

Cash flow

0

$ 17,500

1

-80,500

2

138,425

3

-105,455

4

30,030

a. Fill in the following table:-

Cost of Capital (%)

Project NPV

0

-

5

-

10

-

15

-

20

-

25

-

30

-

35

-

50

-

b. Use the values developed in part (a) to draw an NPV profile for the project.

c. What is his project's IRR?

d. Describe the conditions under which the firm should accept this project.

Reference no: EM131328648

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