Question
Assume the cost of capital for the firm for which you work is 10%. You are analyzing some projects with various capital budgeting techniques. You
Assume the cost of capital for the firm for which you work is 10%. You are analyzing some projects with various capital budgeting techniques. You have decided a payback period of four years or better is acceptable.
Find the NPV for the project with the following cash flows and state whether the project is acceptable.
YR Cash Flow
-$750,000
$250,000
$350,000
$375,000
Find the Payback Period and Discounted Payback Period for the project with the following cash flows and state whether the project is acceptable for either technique.
YR Cash Flow
-$750,000
$135,000
$145,000
$155,000
$165,000
$175,000
Find the MIRR and IRR for the following project and state whether the project is acceptable under each technique:
YR Cash Flow
-$100,000
$85,000
-$20,000
$74,400
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