The cash flows for project A are as follows. 0 1 Y…
Questions
The cаsh flоws fоr prоject A аre аs follows. 0 1 Year 2 Year 3 Year Cash Flow -1,000 600 200 1,500 The required rate return is 10%. A. (5 points) Calculate the payback period. B. (5 points) Compute NPV at 10% discount rate. C. (5 points) Compute IRR. D. (5 points) Determine whether you accept the project or not. You must show NPV and IRR rules you use for your answer. F. (6 points) Draw a NPV graph for this project. You must identify the following items: NPV @ 0% discount rate (y-intercept) IRR (x-intercept) NPV @ 10% discount rate Horizontal asymptote