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A project will have annual cash flows of $1200 for nine years. It costs $9000 to do. Is this a good

Year 0 1 2 3 4 5 6 7 8 9 NPV IRR

Cash Flow -9000 1200 1200 1200 1200 1200 1200 1200 1200 1200 -$1,503.73 3.81%

Since NPV is negative and IRR is less than cost of capital the project in not a good investment.

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ars. It costs $9000 to do. Is this a good project to do if the cost of money is 8%?

he project in not a good investment.

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