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Belgravia Petroleum Inc. is trying to evaluate a generation project with the following cash flows: Year Cashflow 0 -$300,000,000 1 $63,000,000 2 $85,000,000 3 -$50,000,000
Belgravia Petroleum Inc. is trying to evaluate a generation project with the following cash flows:
Year | Cashflow |
0 | -$300,000,000 |
1 | $63,000,000 |
2 | $85,000,000 |
3 | -$50,000,000 |
4 | $145,000,000 |
5 | $175,000,000 |
6 | -$50,000,000 |
7 | $70,000,000 |
8 | $72,000,000 |
Construct a spreadsheet and calculate the following (the required rate of return is 12%):
Payback period
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