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NPV and IRR

Benson Designs has prepared the following estimates for a? long-term project it is considering. The initial investment is ?$36,780 and the project is expected to yield? after-tax cash inflows of ?$4,000 per year for 14 years. The firm has a cost of capital of 13?%.

a. Determine the net present value? (NPV) for the project.

b. Determine the internal rate of return? (IRR) for the project.

c. Would you recommend that the firm accept or reject the? project? (Yes or No)

Financial Management, Finance

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