The YayForWinterBreak Company wants to calculate the NPV and IRR on the following project:
Cost is $22,000 today, with end-of-year cash flows of $10,000, $10,000, and $6,500, Years 1 through 3 respectively for three years. Assume the cost of capital is 8%.
a) NPV?
b) IRR?
c) Do you accept or reject the project, and why?