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0 1 2 3 4 5 6 7 8 (58,000) 21,000 18,000 15,000 13,000 6,000 4,000 - 15,000 Given the cash flows above, assume all
0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
(58,000) | 21,000 | 18,000 | 15,000 | 13,000 | 6,000 | 4,000 | - | 15,000 |
Given the cash flows above, assume all cash flows occur at the end of the time period. | ||||||||
What is the payback? | ||||||||
Now assume all cash flows occur evenly through the time period. Also, assume your required | ||||||||
rate of return is 10%. What is the payback? | ||||||||
Given a 10% required rate of return, what is the NPV? | ||||||||
What is the IRR for the above cash flows? | ||||||||
Assume year 8's cash flow is the sale of the asset at the end of its useful life (or salvage value). | ||||||||
What is the Present Value of that cash flow (single cash flow) today if your rate is 10%? | ||||||||
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