The Management of Ink’s Inc. is evaluating the following investment opportunity which will cost the firm $81,383.53 if undertaken. In addition, it is projected that the following after-tax returns will be generated from the project.
Year Cash Flow
1. $20,000
2. 25,000
3. 30,000
4. 35,000
What will the NPV be on the proposed project based on a weighed average cost of capital of 9%? Additionally, what will the project’s IRR be?