Consider a project that requires an investment of $28,000 today and generates after-tax cash flows of $10,000 per year for the next four years.The appropriate discount rate is 15%.What are the NPV and IRR for this investment?
A) NPV = -$264; IRR = 14.85%
B) NPV = $336; IRR = 15.34%
C) NPV = $550; IRR = 15.97%
D) NPV = $738; IRR = 16.13%
Correct Answer:
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