The cost of capital for a firm is 15%. Calculate the NPV of the following project
Question: 1. the cost of capital for a firm is 15%. Calculate…
- The cost of capital for a firm is 15%. Calculate the NPV of the following project. Should the firm invest in this project?
Year |
Cash flow |
0 |
-20,000 |
1 |
8,000 |
2 |
6,000 |
3 |
5,000 |
4 |
10,000 |
- You have the following information on four mutually exclusive projects with an equal life: Which project(s) should you choose?
Project |
NPV |
IRR |
A |
$35,000 |
11% |
B |
$20,000 |
20% |
C |
$15,300 |
18% |
D |
$40,000 |
15% |