Wetday is evaluating three projects: the Storm, the Cloud and the Downpour. The companys cost of capital

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Wetday is evaluating three projects: the Storm, the Cloud and the Downpour. The company’s cost of capital is 12%. These projects have the following cash flows.

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Required:

Calculate

(i) the payback period

(ii) the accounting rate of return (assume cash flows equal profits)

(iii) the net present value

(iv) the internal rate of return.

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Accounting

ISBN: 9781119977186

3rd Edition

Authors: Michael J. Jones

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