Information about "NPV and IRR"

Not what you're looking for? Search our solutions OR ask your own Custom question.

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 December 24, 2021, 5:02 pm ad1c9bdddf
https://brainmass.com/business/internal-rate-of-return/information-about-npv-and-irr-23807

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".

$2.49