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55-60 A football club is considering expanding the capacity of the club's stadium. The project is framed within a 3-year investment horizon. The cost to
55-60 A football club is considering expanding the capacity of the club's stadium. The project is framed within a 3-year investment horizon. The cost to do this would be 150.000. The club assumes a cost of capital of 10% YEAR CASHFLOW ('000) 0 1 2 -150,000 30,000 80,000 80,000 3 Under the payback period, in which year is the investment paid back? What is the discount factor for year 2 (round to 4 decimal places)? What is the discounted cash flow in year 2 (round to the nearest 10)? f What is the NPV (net present value) of the investment (to the nearest 10)? Under a discount rate of 12% the NPV of the project becomes negative - 2,490. What is the IRR (internal rate of return) of the project (expressed as a percentage and rounded to 1 decimal place)
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