Watson clinic is evaluating a project that costs 52100 and, Ask an Expert

Accounting

Watson Clinic is evaluating a project that costs $52,100 and has expected annual net cash inflows of $11,500 for eight years. The first inflow occurs one year after the cost outflow, and the project has a cost of capital of 12 percent.

What is the project's NPV

Timeline: 0|---------|-----------|----------|--------------|-----------|-----------|------------|------------|

11,500 12,880 14,425 16,156 18,095 20,266 22,698 25,422

NVP(0.12,11500:25422) - 52,100 =

1.What is the project's IRR

IRR = IRR(0.12, 11500:25422) - 52100 =

2.Is the project financially acceptable? Please explain your answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9796692

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