Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Comparing all methods. Ricky Business is looking at a project with the following estimated coath tow Risky Business wants to know the payback period, NPV,
Comparing all methods. Ricky Business is looking at a project with the following estimated coath tow Risky Business wants to know the payback period, NPV, IRR. MIRR. and Plot this project. The appropriate dicent rate for the projects 8%. If the auto period is 6 years for major projects determine whether the management at Risky Business will accept or reject the project under the five different dackalon made. What is the payback period for the new project at Plsky Business? 5.20 years (Round to two decimal places.) Under the payback perlod, this project would be accepted (Select from the crop-down menu) Data Table What is the NPV for the project at Risky Business? $ 3529799.00 Round to the nearest cert) (Click on the following icon in order to copy its contents into a spreadsheet Under the NPV rule, this project would be accepted Select from the drop-down menu.) Initial Investment at start of project: $12.000.000 Cashow end of year one: 51,320,000 What is the IRR for the new project al Risky Bushes? Cash flow ai end of years two through six $2.400.000 each year Cashow af end of years even through in $2.495,000 each year 1407% (Round to wo decimal aces) Cash flow at end of year ten $1,782,857 Under the rule this project would be nocephed (Select from the drop-down menu:) Print Done What is the MIRR for the new project at Risky Business 10.82% (Round to two decima paces.) Under the MRR rule this project would be accepted (Select from the drop down menu) What is the Pitor the new project at Roisky Business? Round to two decimn places)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started