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A firm is considering an investment project with the following cash flows: Year 0=-150,000 (initial costs); Year 1=$40,000, Year 2=$90,000; and Year 3=$30,000, Year 4=$60,000,
- A firm is considering an investment project with the following cash flows: Year 0=-150,000 (initial costs); Year 1=$40,000, Year 2=$90,000; and Year 3=$30,000, Year 4=$60,000, and Year 5 =$-10,000. The company has a 10% cost of capital. What is the projects discounted payback?
- 2.90 years
- 2.95 years
- 3.41 years
- 4.21 years
- A firm is considering an investment project with the following cash flows: Year 0=-150,000 (initial costs); Year 1=$40,000, Year 2=$90,000; and Year 3=$30,000, Year 4=$60,000, and Year 5 =$-10,000. The company has a 10% cost of capital, calculate the NPV for the project.
- $24,264
- $18,055
- $20,211
- $19,873
- A firm is considering an investment project with the following cash flows: Year 0=-150,000 (initial costs); Year 1=$40,000, Year 2=$90,000; and Year 3=$30,000, Year 4=$60,000, and Year 5 =$-10,000. The company has a 10% cost of capital, calculate the IRR for the project.
- 15.9%
- 16.2%
- 17.2%
- This is a non-normal cash flow project, so we can use IRR approach to evaluate it.
- A firm is considering an investment project with the following cash flows: Year 0=-150,000 (initial costs); Year 1=$40,000, Year 2=$90,000; and Year 3=$30,000, Year 4=$60,000, and Year 5 =$-10,000. The company has a 10% cost of capital, calculate the MIRR for the project.
- 12.4%
- 14.2%
- 11.8%
- 19.7%
- If a firm has paid $35,000 for a consulting firm for the feasibility analysis of a project. The estimated present value of all future cash inflows a cash outflows generated from this project (excluding the consulting fee) is $25,000. Should the investment be undertake?
- YES OR NO
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