Question
Comparing all methods. Risky Business is looking at a project with the following estimated cash flow: LOADING... . Risky Business wants to know the payback
Comparing all methods. Risky Business is looking at a project with the following estimated cash flow: LOADING... . Risky Business wants to know the payback period, NPV, IRR, MIRR, and PI of this project. The appropriate discount rate for the project is 13%. If the cutoff period is 6 years for major projects, determine whether the management at Risky Business will accept or reject the project under the five different decision models.
Initial investment at start of project: $13,700,000
Cash flow at end of year one: $2,329,000
Cash flow at end of years two through six $2,740,000
Cash flow at end of years seven through nine $3,027,700
Cash flow at end of year ten $2,329,000
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