Question
Calculate the PI given the following csh flows if the appropriate required rate of return is 10% YEAR CASH FLOWS 0 -$55,000 1 10,000 2
Calculate the PI given the following csh flows if the appropriate required rate of return is 10%
| YEAR | CASH FLOWS |
| 0 | -$55,000 |
| 1 | 10,000 |
| 2 | 10,000 |
| 3 | 10,000 |
| 4 | 10,000 |
| 5 | 10,000 |
| 6 | 10,000 |
Should the project be accepted? Without calculating the NPV, do you think it would be positive or negative? Why?
What is the project's PI?
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Fundamentals Of Futures And Options Market
Authors: John C. Hull
6th Edition
0132242265, 9780132242264
