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What is the npv of the project

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Reference no: EM133160266

Question - You have a project with an initial investment of $130 that pays $65 in one year and $75 in five years. The project is very safe with no default risk. The zero-coupon 1-year T-bill has a yield to maturity of 1%. The zero-coupon 5-year T-note has a yield to maturity of 2.5%. What is the NPV of the project? What is the IRR of the project? Should you accept it?

Reference no: EM133160266

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