Question
A project requires an initial outlay of $50,000,000. The project life is determined to be 5 years at which time it will be discontinued and
A project requires an initial outlay of $50,000,000. The project life is determined to be 5 years at which time it will be discontinued and sold for scrap at $5,000,000. The project will generate net cash in-flows of $20,000,000 every year for the next five years. The projects required rate or discount rat is 11.25%
1. What is the projects Payback period?
2. What is the projects NPV?
3. What is the projects IRR?
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs
10th edition
133052311, 978-0133052312
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