Question

A capital project has an initial investment of $100,000 and cash flows in years 1-6 of $25,000, $10,000, $50,000, $10,000, $10,000, and $60,000, respectively. Given a 15 percent cost of capital,

•(a) compute the net present value. .
•(b) compute the internal rate of return .
•(c) should the project be accepted? Why or why not?

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