YearCash Flow to Equity ($)0-2,000,00011,500,00022,000,0003-1,000,000Requirements:Calculate the Net Present Value (NPV) of the project if the...

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Question

Accounting

Year

Cash Flow to Equity ($)

0

-2,000,000

1

1,500,000

2

2,000,000

3

-1,000,000

Requirements:

  1. Calculate the Net Present Value (NPV) of the project if the cost of equity is 14%.
  2. Determine the Internal Rate of Return (IRR) for this project.
  3. Should the project be accepted if the cost of equity is 14%?

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