Watson Clinic is evaluating a project that costs $52,100 and has expected annual net cash inflows of $11,500 for eight years. The first inflow occurs one year after the cost outflow, and the project has a cost of capital of 12 percent.
What is the project's NPV
Timeline: 0|---------|-----------|----------|--------------|-----------|-----------|------------|------------|
11,500 12,880 14,425 16,156 18,095 20,266 22,698 25,422
NVP(0.12,11500:25422) - 52,100 =
1.What is the project's IRR
IRR = IRR(0.12, 11500:25422) - 52100 =
2.Is the project financially acceptable? Please explain your answer.