A project costing 20,000 offers an annual cash flow of 5,000 over its life. (a) Calculate the

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A project costing £20,000 offers an annual cash flow of £5,000 over its life.

(a) Calculate the internal rate of return using the payback reciprocal assuming an infinite life.

(b) Use tables to test your answer assuming the project life is (i) 20 years, (ii) eight years.

(c) What conclusions can be drawn as to the suitability of the payback reciprocal in measuring investment profitability?

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Corporate Finance And Investment Paperback

ISBN: 9781292208541

9th Edition

Authors: Richard Pike

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Question Posted: Jul 31, 2024 02:02 AM

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A project costing 20,000 offers an annual cash flow of 5,000 over its life. (a) Calculate the

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Corporate Finance And Investment Paperback

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