Capital Budgeting

Marissa Maestas needs YOU to develop 3 Capital Budgeting illustrations (NPV, IRR, PI) for a project or machine for her fictitious businesswhich we probably cant remember what it isI certainly cannot as Im making up this exam, but anyway, professorial digression, LOL, LOL

Instructions:

Come up with after tax cash flows for up to 5 years with numbers in the millions for each year.

Your Cost of Capital is 8%

Indicate based on NPV if the project is acceptable or not and why

Compute IRR, PI