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(Round all answers to 2 decimal places) A project has the following cash flows:

ID: 2701223 • Letter: #

Question

(Round all answers to 2 decimal places)

A project has the following cash flows:

YEAR       CASH FLOWS ($)

   0               13,400

   1               -6,000

   2               -5,600

   3               -4,900

   4               -2,900

What is the IRR for the project  _________ %

What is the NPV of the project, if the required return is 8 percent $_________

Should the firm accept the project?

What is the NPV of this project, if the required return is 19 percent $__________

Should the firm accept the project?

Explanation / Answer

IRR - 18.79%

NPV - 2978.02

Yes

NPV - (49.58)

NO