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A five-year project requires investments of $120,000 at time zero and $70,000 at the end of year one to generate revenues of $100,000 at the
A five-year project requires investments of $120,000 at time zero and $70,000 at the end of year one to generate revenues of $100,000 at the end of each of years two through five. The investor's minimum rate of return is 15.0%. (a) calculate the project NPV, NFV, and NAV; (b) calculate the project ROR, (c) develop a cumulative NPV diagram to indicate the project discounted payback period and maximum capital exposure, (d) develop an NPV profile to graphically show the ROR value, (e) Calculate PVR and Pl of the project. 1. A five-year project requires investments of $120,000 at time zero and $70,000 at the end of year one to generate revenues of $100,000 at the end of each of years two through five. The investor's minimum rate of return is 15.0%. (a) calculate the project NPV, NFV, and NAV; (b) calculate the project ROR, (c) develop a cumulative NPV diagram to indicate the project discounted payback period and maximum capital exposure, (d) develop an NPV profile to graphically show the ROR value, (e) Calculate PVR and Pl of the project. 1
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