# 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% |