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1. You are considering investing in a gas pipeline project. The initial cash outlay is $8,000,000, and the pipeline is expected to generate free cash
1. You are considering investing in a gas pipeline project. The initial cash outlay is $8,000,000, and the pipeline is expected to generate free cash flows of $1,500,000 at the end of each year for 12 years. The required rate of return for this project is 12%. a) What is the projects payback period? b) What is the project's NPV? c) What is the project's PI? d) What is the project's IRR
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