Question: A capital project has an ititial investment of 225,000 and cash flows in years 1-6 of 80,000, 65,000, 50,000, 50,000, 35,000, and 60,000, respectively. Given a 10 percent cost of capital,
a. Compute the net present value
b. Compute the internal rate of return
c. Should the project be accepted? Why or why not?