Given the following cash flows for a capital project, calculate the NPV and IRR. The required rate of return is 8 percent.

Year 0 1 2 3 4 5
Cash flow ?50,000 15,000 15,000 20,000 10,000 5,000
A. $1,905 10.9%
B. $1,905 26.0%
C. $3,379 10.9%

Ans: C. $3,379 10.9%

Business

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