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A project has the following forecasted cash flows: Cash Flows Thousands of dollars C0 C1 C2 C3 -100 40 60 50 The investor expected rate
A project has the following forecasted cash flows: Cash Flows Thousands of dollars C0 C1 C2 C3 -100 40 60 50 The investor expected rate of return is 10%. The cost of capital is 12%. Required: 1.What will you choose to be the discount rate? Why? 2.Please calculate the payback period (PP) and return on investment (ROI). 3.Please calculate NPVPVI and IRR.. 4.Make decision based on the above calculation and explain the reasons. 5.David said that the profit is the same as the cashflow. Do you think his opinion is right or wrong? Why?
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