As investment with a 3year life and a cost of #120000 generates revenue of #25000 in year 1 #45000 in year 2 and #65000 in year 3. If the discount rate is 8%
(i) what is the NPV of the investment.
(ii) state whether the investment should be accepted or not and why.
(iii) using 12% as your second discount rate, to solve the remaining part of the question under IRR.
Ii.) Negative NPV, investment should not be accepted
t= number of years
Co = initial investments
t= Number or periods
r= Discount rate