Describe at least 3 different ways of whether or not the following project should be accepted or rejected (NPV, IRR & Payback for example).
Project has a 6 years life.
Discount Rate =8%
Cash outlay today to develop project=$300,000.00
Free cash flow generated by project in years:
Year 1=40,000
Year 2=40,000
Year 3=50,000
Year 4=30,000
Year 5=70,000
Year 6=100,000
Salvage value of PP&E at end of project=20,000
Should the project be accepted or rejected?
Use 3 methods to determine acceptance or rejection of the project