Question
ABC is considering an investment project that has the following cash flows: CF0=-$1,000; CF1=400; CF2=300; CF3=500; CF4=400 The companys cost of capital is 10 percent.
ABC is considering an investment project that has the following cash flows:
CF0=-$1,000; CF1=400; CF2=300; CF3=500; CF4=400
The companys cost of capital is 10 percent. What is the projects discounted payback, internal rate of return (IRR), and net present value (NPV)?
| Discounted Payback = 3.05, IRR = 21.22%, NPV = $300 | ||
| Discounted Payback = 2.60, IRR = 10.00%, NPV = $300 | ||
| Discounted Payback = 2.60, IRR = 21.22%, NPV = $260 | ||
| Discounted Payback = 3.05, IRR = 21.22%, NPV = $260 |
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Mathematics Of Finance
Authors: Petr Zima, Robert L. Brown
5th Edition
0070871353, 978-0070871359
