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NPV & IRR of an investment

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Your firm has an opportunity to male an investment of $50,000. Its cost of capital is 12%. 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.

I. Calculate the NPV
II. Calculate the IRR (to the nearest %)
III. Would you accept this project?

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NPV and IRR are assessed.

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Your firm has an opportunity to male an investment of $50,000. Its cost of capital is 12%. It expects after-tax cash flows ...

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