The cost of capital for a firm is 15%. Calculate the NPV of the following project

jagguarpaw January 10, 2017 0 Comments

Question: 1. the cost of capital for a firm is 15%. Calculate…

  1. 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
  1. 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%