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A project requires an initial investment of $80,000. The project is expected to generate cash inflows of $20,000 per year for 6 years. (a) what
A project requires an initial investment of $80,000. The project is expected to generate cash inflows of $20,000 per year for 6 years. (a) what is the project's payback period? If we require a 5-year payback period to take an investment, should we accept this project? (b) Suppose the cost of capital is 10%, what is the project's NPV? Based on the NPV decision rule, should we accept this project? (c) What is this project's MIRR? If the cost of capital is 10%, should we accept this project
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