*Solve without using Excel, write out the equations*
Suppose a project requires an initial cash outflow of $34,900.
The project will last for four years with the annual cash flows
given below. The required rate of return is 12%.
Year Cash Flow
Cash Flows
1
12,500
2
19,700
3
0
4
10,400
A) Compute the net present value of the project. Should the firm
invest in this project based on net present value? Why?
B) Compute the internal rate of...