3. Calculate the NPV at a cost of capital of 9% and the IRR for a project with an initial outlay of $69,724 and an inflow of $15,000 followed by four consecutive inflows of $17,000 at one-year intervals.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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Chapter11: Capital Budgeting And Risk
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3. Calculate the NPV at a cost of capital of 9% and the IRR for a project with an initial outlay of
$69,724 and an inflow of $15,000 followed by four consecutive inflows of $17,000 at one-year
intervals.
a. -$5,437.29; 6%
b. $5,437.29; 4%
c. $5,437.29; 4.2%
d. -$5.427.29; 3,39%
Transcribed Image Text:3. Calculate the NPV at a cost of capital of 9% and the IRR for a project with an initial outlay of $69,724 and an inflow of $15,000 followed by four consecutive inflows of $17,000 at one-year intervals. a. -$5,437.29; 6% b. $5,437.29; 4% c. $5,437.29; 4.2% d. -$5.427.29; 3,39%
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