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NPV and IRR A project that costs $712,277.54 to install will provide annual cash flows of...

NPV and IRR

A project that costs $712,277.54 to install will provide annual cash flows of $144,000.00 for each of the next 9 years.


a.

Calculate the NPV if the discount rate is 7.40%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)


  NPV $   


b. Is this project worth pursuing?
Yes
No


c.

How high can the discount rate be before you would reject the project (i.e. What is the projects IRR)? (Do not round intermediate calculations. Round your answer to 2 decimal places.)


  Discount rate %
0 0
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