The question is already answered, since the NPV is positive, which is $296.399 Mn. and the IRR is also provided, which is 31.5%
Project can be accepted.
7.3%. Should you make the hvcement? Calculano the IRR. Docsthe IRR rulc agrec iththc NPV rule?...
You are considering opening a new plant. The plant will cost S98.1 million upfront and will take one year to build. After that, it is expected to produce profits of $30.9 million at the end of every year of production. The cash flows are expected to last forever. Calculate the NPV of this investment opportunity if your cost of capital is 7.3%. Should you make the investment? Calculate the IRR. Does the IRR rule agree with the NPV rule? Here...
Suppose you ar otered $,300 today but must make tha to lowing paymants: Year Cash Flows (5 7,300 -4,000 2.700 1,800 1,200 a. what is the IRR of this ofer? (Do not round intermediate calculations. Enter your answer as percent rounded to 2 decimal places, e.g, 32.16) IRR b. It the approprlate dscount rate I 10 parcent, chauld you accapt s atter? Accept Reject c. If the appropriate decount rac is 22 parcent, chauld you acccpt tis cffer? Reject d-1....