question archive A recent project nominated for consideration at your company has a four-year cash flow of$20,000; $25,000; $30,000; and $50,000
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A recent project nominated for consideration at your company has a four-year cash flow of$20,000; $25,000; $30,000; and $50,000. The cost of the project is $75,000.
1. If the required rate of return is 20%, conduct a discounted cash flow calculation to determine the NPV.
2. What is the benefit-cost ratio for the project?
3. Assuming the required rate of return remains 20%, what would the NPV of the above project be if the inflation rate was expected to be 4% in each of the next four years?
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