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    NPV & IRR

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    1) Your firm has an opportunity to make an investment of $50,000. Its cost of capital is 12 percent. It expects after-tax cash flows (including the tax shield from depreciation) for the next 5 years to be as follows:

    Year 1 $10,000
    Year 2 20,000
    Year 3 30,000
    Year 4 20,000
    Year 5 5,000

    a. Calculate the NPV
    b. Calculate the IRR (to the nearest percent)
    c. Would you accept this project?

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    https://brainmass.com/economics/personal-finance-savings/npv-irr-141833

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    1) Your firm has an opportunity to make an investment of $50,000. Its cost of capital is 12 percent. It expects after-tax cash flows (including the tax ...

    Solution Summary

    NPV & IRR are calculated.

    $2.49

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