Cost of capital is 12%. Its expects aftertax cash flows (including the tax shield from depreciation) for the next 5 years are:
Year 1 $ 10,000
Year 2 20,000
Year 3 30,000
Year 4 20,000
Year 5 5,000
a) Calculated the NPV.
b) calculate the IRR
c) Would you accept the project?