Question
An investment requires $160,000 upfront and yields the following net cash flows: Year Net Cash Flows 1 $25,000 2 $35,000 3 $45,000 4 $55,000 5
An investment requires $160,000 upfront and yields the following net cash flows:
Year | Net Cash Flows |
1 | $25,000 |
2 | $35,000 |
3 | $45,000 |
4 | $55,000 |
5 | $65,000 |
6 | $75,000 |
Requirements:
- Calculate the cumulative net cash flows.
- Determine the payback period.
- Compute the NPV at a 8% discount rate.
- Calculate the IRR.
- Assess the PI.
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Cost Accounting A Managerial Emphasis
Authors: Srikant M. Datar, Madhav V. Rajan, Charles T. Horngren, Louis Beaubien, Chris Graham
7th Canadian Edition
133138445, 978-0133926330, 133926338, 978-0133138443
