Question
1) A project has an initial cost of $69,975, expected net cash inflows of $8,000 per year for 6 years, and a cost of capital
1) A project has an initial cost of $69,975, expected net cash inflows of $8,000 per year for 6 years, and a cost of capital of 13%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places.
2) A project has an initial cost of $66,425, expected net cash inflows of $15,000 per year for 11 years, and a cost of capital of 13%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round your intermediate calculations. Round your answer to the nearest cent.
3) A project has an initial cost of $40,450, expected net cash inflows of $15,000 per year for 10 years, and a cost of capital of 12%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.
4)A project has an initial cost of $69,975, expected net cash inflows of $8,000 per year for 6 years, and a cost of capital of 13%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places.
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Financial Literacy For Managers
Authors: Richard A. Lambert
1st Edition
1613630182, 978-1613630181
