Question
A company plans to undertake a project requiring an investment of $300,000 with the following cash inflows: Year Cash Inflow 1 $100,000 2 $120,000 3
A company plans to undertake a project requiring an investment of $300,000 with the following cash inflows:
Year | Cash Inflow |
1 | $100,000 |
2 | $120,000 |
3 | $140,000 |
4 | $160,000 |
a. Calculate the NPV if the discount rate is 11%. b. Determine the IRR. c. Calculate the profitability index. d. Evaluate the payback period. e. Should the project be accepted based on your calculations?
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Introduction To Financial Accounting
Authors: Anne Marie Ward, Andrew Thomas
7th edition
77138449, 978-0077132682, 77132688, 978-0077138448
