Barclay plc is assessing an investment project. The estimated cash flows are as follows: The businesss cost

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Barclay plc is assessing an investment project. The estimated cash flows are as follows:

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The business’s cost of finance is 15 percent p.a. and it seeks projects with a three year maximum discounted payback period.
Should the project be undertaken on the basis of NPV and discounted PBP?

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Business Finance

ISBN: 9781292134406

11th Edition

Authors: Eddie McLaney

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