In: Finance
(NPVcalculation)Calculate the NPV given the following free cash flows, if the appropriate required rate of return is
8 percent. Should the project be accepted?
YEARCASH FLOW
0
−$90,000
1
10,000
2
10,000
3
15,000
4
15,000
5
30,000
6
30,000
MIRRcalculation)Calculate the MIRR given the following free
cash flows if the appropriate required rate of return is 12
percent (use this as the reinvestmentrate). Should the project
be accepted? YEAR CASH FLOWS
0 -50,000
1 35,000
2 35,000
3 35,000
4 -35,000
5 35,000
6 35,000