What is the irr of this project over a seven-year span

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Reference no: EM133334027

Problem: Your executive leadership team has given you a potential project to analyze and provided questions they would like you to answer. Using the project details below, write a one-page Executive Summary of your project analysis and provide the team with a final recommendation for whether your company should pursue the project.

Project Details: The project will require an initial investment of $300,000 and is expected to return the following cash flows:

Year	Amount
1	$25,000
2	$50,000
3	$35,000
4	$120,000
5	$130,000
6	-$25,000
7	$110,000

Leadership Questions: Address the following questions from the leadership team in your Executive Summary. Be sure to include clear rationales for each of your responses.

Assuming we discount inflation, what is the IRR of this project over a seven-year span?
Given the calculated IRR, and assuming we can earn 7% by investing in securities, would you recommend that we pursue the project? Why or why not?

Reference no: EM133334027

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