Proposed project Q has the following after-tax cash flows:
Year 0 1 2 3 4
-$5,000 $1,000 $1,000 $3,000 $5,000
Using a discount rate of 8.38%, is the proposed project acceptable?
No; NPV = - $5,000.00
Yes; NPV = $2,754.43
Yes; NPV = $5,000.00
Yes; NPV = $13,568