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Comparing all methods. Risky Business is looking at a project with the estimated cash flow as follows: Initial investment at start of project: $13,000,000 Cash
Comparing all methods. Risky Business is looking at a project with the estimated cash flow as follows: Initial investment at start of project: $13,000,000 Cash flow at end of year one: $2,080,000 Cash flow at end of years two through six: $2,600,000 each year Cash flow at end of years seven through nine: $2,704,000 each year Cash flow at end of year ten: $2,080,000 Risky Business wants to know the payback period, NPV, IRR, and PI of this project. The appropriate discount rate for the project is 8%. If the cutoff period is six years for major projects, determ whether the management at Risky Business will accept or reiect the proiect under the five different decision models. What is the payback period for the new project at Risky Business? years (Round to two decimal places.) Under the payback period, this project would be (Select from the drop-down menu.) What is the NPV for the project at Risky Business? \$ (Round to the nearest cent.) Under the NPV rule, this project would be (Select from the drop-down menu.) What is the IRR for the new project at Risky Business? % (Round to two decimal places.) Under the IRR rule, this project would be (Select from the drop-down menu.)
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