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Question: NPV and IRR Benson Designs has prepared the following estimates for a long-term project it is considering. The initial investment is $47,700, and the project is expected to yield after-tax cash inflows of $6,000 per year for 12 years. The firm has a cost of capital of 15%.

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

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

Would you recommend that the firm accept or reject the project?

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  • Category:- Basic Finance
  • Reference No.:- M92857621

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