Question
A pharmaceutical company is considering an R&D project costing $5,00,000. The project will bring in annual cash inflows of $1,10,000 for 7 years. The companys
A pharmaceutical company is considering an R&D project costing $5,00,000. The project will bring in annual cash inflows of $1,10,000 for 7 years. The company’s required rate of return is 11%.
Requirements:
- Calculate the NPV of the project.
- Determine the IRR.
- Compute the Payback Period.
- Calculate the PI of the project.
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Valuation The Art and Science of Corporate Investment Decisions
Authors: Sheridan Titman, John D. Martin
3rd edition
133479528, 978-0133479522
