What is the future value of the cash flows

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Question - A project has the following cash flows at the end of each year.

Year

1

2

3

Cash Flow

$5,000

($5,000)

$5,000

Required -

1. What is the future value of the cash flows at the end of year 3 at a 5% discount rate?

2. If the project also requires an upfront investment of $5,000 what is the PV of the cash flows?

3. Based on above, should this project be accepted? Why or why not?

Reference no: EM133108709

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