Question
A business owner wants to invest $100,000 into a project that will generate a net present value of $150,000. The project has an expected life
A business owner wants to invest $100,000 into a project that will generate a net present value of $150,000. The project has an expected life of five years and requires an initial investment of $80,000. If the business owner's cost of capital is 10%, what is the internal rate of return (IRR) of the project? Also, calculate the profitability index (PI) of the project.
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The detailed answer for the above question is provided below Given data Initial investment C 80000 Expected cash inflow CC 150000 Cost of capital r 10 ...Get Instant Access to Expert-Tailored Solutions
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