Question
5. Consider the following project: Year 0 1 Cash Flow -75 20 22 3 4 25 40 35 The cost of capital is 15%.
5. Consider the following project: Year 0 1 Cash Flow -75 20 22 3 4 25 40 35 The cost of capital is 15%. a. Calculate the NPV. b. Write down the equation for the IRR of the project. c. What is the maximum number of positive IRRs for this project? d. Is the NPV function for this project upward-sloping, downward-sloping, or does it have a different shape? e. Is the IRR greater than or lower than 15%? (No calculations are necessary to answer this question.) f. Calculate the Profitability Index. g. Calculate the simple payback period. h. Calculate the discounted payback period.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
