Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CAN YOU PLEASE ANSWER THESE QUESTIONS. (Payback period, net present value, profitability index, and internal rate of return calculations) You are considering a project with

CAN YOU PLEASE ANSWER THESE QUESTIONS.

image text in transcribed

image text in transcribed

(Payback period, net present value, profitability index, and internal rate of return calculations) You are considering a project with an initial cash outlay of $79,000 and expected cash flows of $24,490 at the end of each year for six years. The discount rate for this project is 9.6 percent a. What are the project's payback and discounted payback periods? b. What is the project's NPV? c. What is the project's PI? d. What is the project's IRR? a. The payback period of the project is 3.23 years. (Round to two decimal places.) If the discount rate for this project is 9.6%, the discounted payback period of the project is years. (Round to two decimal places.) b. The project's NPV is $ (Round to the nearest dollar.) c. The project's PI is (Round to two decimal places.) d. The project's IRR is %. (Round to two decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Mathematical Finance Discrete Time Models

Authors: Stanley R. Pliska

1st Edition

1557869456, 9781557869456

More Books

Students also viewed these Finance questions