Explore BrainMass

Explore BrainMass

    Information about "NPV and IRR"

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A project that costs 3,000 will provide annual cash flows of $800 for each of the next 6 years. Is this project worth pursuing if the discount rate is 10%? How high can the discount rate be before you reject the project?

    © BrainMass Inc. brainmass.com March 4, 2021, 6:01 pm ad1c9bdddf

    Solution Preview

    See attached for detailed response.

    For a project to be rejected, the NPV must be equal or less than zero.
    To find the highest ...

    Solution Summary

    The solution looks at "NPV" and "IRR".