Investment DecisionCompany A is evaluating a new project with the following cash flows:YearCash Flow ($)0-8,000,00014,000,00024,500,0003-1,500,000Requirements:1.Plot...
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Accounting
Investment Decision
Company A is evaluating a new project with the following cash flows:
YearCash Flow ($)
0-8,000,000
14,000,000
24,500,000
3-1,500,000
Requirements:
1.Plot the NPV profile.
2.Calculate the IRR.
3.Determine the NPV using a discount rate of 12%.
4.If the cost of capital is 12%, is this project viable?
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