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A new investment of $220,000 is proposed with the following net cash flows: Year Net Cash Flows 1 $50,000 2 $60,000 3 $70,000 4 $80,000
A new investment of $220,000 is proposed with the following net cash flows:
Year | Net Cash Flows |
1 | $50,000 |
2 | $60,000 |
3 | $70,000 |
4 | $80,000 |
5 | $90,000 |
Requirements:
- Calculate the cumulative net cash flows.
- Determine the payback period.
- Compute the NPV at a 12% discount rate.
- Calculate the IRR.
- Assess the PI.
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Survey of Accounting
Authors: Carl S. Warren
8th edition
1305961889, 978-1337517386, 1337517380, 978-1305961883
