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### Horngren'S Financial And Managerial Accounting

Book edition 6th
Author(s) Tracie L. Miller-Nobles, Brenda L. Mattison
Pages 992 pages
ISBN 9780134486833

# Cornell Company is considering a project with an initial investment of $596,500 that is expected to produce cash inflows of$125,000 for nine years. Cornell’s required rate of return is 12%.14. What is the NPV of the project?15. What is the IRR of the project?16. Is this an acceptable project for Cornell?

## Step 3: 16. Project analysis-

The NPV of the company is greater than zero and the IRR is greater than required rate of return. Thus the company should accept the project.