Question
1) Initial Outlay$50 million Year 1$10 million Year 2$20 million Year 3$20 million Year 4$10 million Year 5$5 million The required rate of return is
1)
Initial Outlay$50 million
Year 1$10 million
Year 2$20 million
Year 3$20 million
Year 4$10 million
Year 5$5 million
The required rate of return is 15%. What is the NPV of the project?Round to the near hundredth million. Do not include any unit such as $, %, etc. (i.e. if your answer were -$1.23 million, type in -1.23 as your answer without $ and million)If there are multiple answers, then type NA.
2)
Initial Outlay$50 million
Year 1$10 million
Year 2$20 million
Year 3$20 million
Year 4$10 million
Year 5$5 million
The required rate of return is 15%. If the firm wants to make the profitability index equal to 1 for Project Alpha, the initial outlay has to be:
Round to the nearest hundredth million without a dollar sign. (i.e. if your answer is $12.34 million, then type 12.34 as your answer.)
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