Question
An initial investment of $300,000 is required for a project. The net cash flows expected are as follows: Year Net Cash Flows 1 $60,000 2
An initial investment of $300,000 is required for a project. The net cash flows expected are as follows:
Year | Net Cash Flows |
1 | $60,000 |
2 | $70,000 |
3 | $80,000 |
4 | $90,000 |
5 | $100,000 |
6 | $110,000 |
Requirements:
- Calculate the cumulative net cash flows.
- Determine the payback period.
- Compute the NPV at a 6% discount rate.
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Principles of managerial finance
Authors: Lawrence J Gitman, Chad J Zutter
12th edition
9780321524133, 132479540, 321524136, 978-0132479547
