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BBB-X 30 pts 1) The Diamond Corp. is considering an investment which has the following cash flows: Time Period 0 1 -2600 50 2 3

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BBB-X 30 pts 1) The Diamond Corp. is considering an investment which has the following cash flows: Time Period 0 1 -2600 50 2 3 2000 600 4 5 1000 50 6 50 7 200 8 150 It has a cut-off period of 5 years for payback period, 6.5 years for discounted payback period. If its weighted average cost of capital is 13% should the project be selected base on the criteria of a) payback period b) discounted payback period c) Net Present Value d) internal rate of return. SHOW YOUR WORK

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