The manager of Keebee, Inc. is considering a new project that would require an initial...

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Accounting

The manager of Keebee, Inc. is considering a new project that would require an initial investment of $1,197,810. The cost of capital or the required rate of return of this company is 10 percent. This project will generate an annual cash inflow of $300,000 in the following five years.

  1. Calculate the net present value (NPV) of this project. Indicate whether or not this project is acceptable.

  1. Calculate the internal rate of return (IRR) of this project.

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