Geronimo, Inc is considering a project that has an initial after-tax outlay or a

Question

Geronimo, Inc is considering a project that

has an initial after-tax outlay or after tax cost of $220,000. The

respective future cash inflows from its four year project for years

1 through 4 are: $50,000, $60,000, $70,000 and $80,000. Geronimo

uses the net present value method and has a discount rate of 11%.

Will Geronimo accept this project?

Show your work! What is the amount!

Please do not repost chegg answers or urls! Please stop spamming my questions its not fair because I have to end up reposting it and lose points!

Explanation / Answer

NPV = - $22,375.73

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