An investment with a 3year life and a cost of #120000 generates revenue of #25000 in year1 #45000 in year2 and #65000 in year3. 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. (Using the 12% as your second discount rate to solve the remaining part of the question under IRR.

/in /by

An investment with a 3year life and a cost of #120000 generates
revenue of #25000 in year1 #45000 in year2 and #65000 in year3. 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.

(Using the 12% as your second discount rate to solve the remaining
part of the question under IRR.

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