NPV and IRR Benson Designs has prepared the following estimates for a long-term project it...
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NPV and IRR Benson Designs has prepared the following estimates for a long-term project it is considering. The initial investment is $12,480, and the project will yield cash inflows of $4,000 per year for 5 years. The firm has a cost of capital of 12%. a. Determine the net present value (NPV) for the project. b. Determine the intemal rate of retum (iRR) for the project. c. Would you recommend that the frm accept or reject the project? a. The NPV of the project is $ (Round to the nearest cent) b. The IfR of the project is K. (Round to two decimal places.) c. Would you recommend that the frm accept the project? (Select the best answer beiow.) Yes No
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