Problem:
The initial investment in the project is $45,000 and the firms cost of capital is 12%. The expected annual cash inflow for five years is $23,000.
Question 1: Calculate the Net present Value of this proposal
Question 2: Calculate the Interanl Rate of Retuen of ths proposal
Question 3: Should you except this proposal?
Note: Please explain comprehensively and give step by step solution.