Question
4. (20 points) Consider the following cash flows: Year Cash Flow 0 -$9,000 $2,000 1 2 3 4 5 6 $3,600 $2,700 $2,100 $2,100
4. (20 points) Consider the following cash flows: Year Cash Flow 0 -$9,000 $2,000 1 2 3 4 5 6 $3,600 $2,700 $2,100 $2,100 $1,600 C. IRR. Calculate the IRR for this project. The company's required rate of return is 10%. Should it be accepted or rejected? D. NPV. Using a 10% required rate of return, calculate the NPV for this project. Should it be accepted or rejected? E. PI. Calculate the Profitability Index (PI) for this project. Should it be accepted or rejected?
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Contemporary Engineering Economics
Authors: Chan S. Park
5th edition
978-0136118480
