Question
A project will produce cash inflows of $1,850 a year for four years. The project initially costs $10,400 to get started. In year five, the
A project will produce cash inflows of $1,850 a year for four years. The project initially costs $10,400 to get started. In year five, the project will be closed and as a result should produce a cash inflow of $8,500. What is the net present value of this project if the required rate of return is 13.75%? What is the IRR for the project? What is the PI for the project? What is the payback period for the project? (If the project never pays back then enter 0 for the answer). What is the discounted payback period for the project?
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Principles of Corporate Finance
Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen
10th Edition
9780073530734, 77404890, 73530735, 978-0077404895
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