Question
A facility upgrade for womens softball has a cost of $65,125, expected net cash inflows are $9,000 per year for 20 years, and a cost
A facility upgrade for womens softball has a cost of $65,125, expected net cash inflows are $9,000 per year for 20 years, and a cost of capital of 11%. The project has a useful life of 20 years but your organization does not have a maximum payback period. a) What is the projects payback period? b) What is the projects discounted payback period? c) What is the projects NPV? d) What is the projects IRR? e) Should the facility upgrade be accepted? Why or why not?
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Project Finance In Theory And Practice
Authors: Stefano Gatti
3rd Edition
0128114010, 978-0128114018
