Question
Compute NPV, IRR, and Payback Period for the following project. Assume a cost of capital of 16.5%. Recommend or reject this project and justify your
Compute NPV, IRR, and Payback Period for the following project. Assume a cost of capital of 16.5%. Recommend or reject this project and justify your recommendation.
Project Initial Capital Cost $100,000
Project Life 5 Years
Annual Revenue $ 32,000
Annual Operating Cost $ 8,000
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Equity Valuation And Portfolio Management
Authors: Frank J. Fabozzi, Harry M. Markowitz
1st Edition
047092991X, 9780470929919
