Question
Calculate the following based on the table and show your work. 1 . What is the payback period? 2 . What is the discounted
Calculate the following based on the table and show your work.
What is the payback period?
What is the discounted payback period?
What is the NPV
What is the IRR?
What is the MIRR?
What is the Profitability Index?
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Operating CF $264,700 346,300 259,260 207,036 207,036 167,868 128,700 128,700 Less: Inv In Op Cap Change in FA $1,350,000 -66,000 Change in NWC 20,000 -20,000 Free Cash Flow -1,350,000 264,700 346,000 259,260 207,036 207,036 167,868 128,700 214,700 1. Payback Period 2. Discounted Payback Period 3. NPV 4. IRR 5. MIRR 6. Profitability Index 7. Reccommendation
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
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