Question
1. A project has a cash flow mentioned below. The expected cost of capital is 12%. Calculate the NPV. Year 0 -175000 Year 1 64000
1. A project has a cash flow mentioned below. The expected cost of capital is 12%. Calculate the NPV.
| Year 0 | -175000 |
| Year 1 | 64000 |
| Year 2 | 70800 |
| Year 3 | 91080 |
2. A project has a cash flow mentioned below. The expected cost of capital is 12%. Calculate the Payback period in years. (Up to two decimals)
| Year 0 | -175000 |
| Year 1 | 64000 |
| Year 2 | 70800 |
| Year 3 | 91080 |
3. A project has a cashflow mentioned below. The expected cost of capital is 12%. Calculate the discounted Payback period in years. (Up to two decimals)
| Year 0 | -175000 |
| Year 1 | 64000 |
| Year 2 | 70800 |
| Year 3 | 91080 |
4. A project has a cashflow mentioned below. The expected cost of capital is 12%. Calculate the IRR. (Answer in up to four decimals: 19.56% should be answered as 0.1956)
| Year 0 | -175000 |
| Year 1 | 64000 |
| Year 2 | 70800 |
| Year 3 | 91080 |
Please provide answers and work!
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M Finance
Authors: Marcia Cornett, Troy Adair, John Nofsinger
3rd Edition
0077861779, 978-0077861773
