Question
Conduct a cost-benefit analysis for an investment project. Investment Project Initial Investment ($) Annual Cash Inflows ($) Annual Cash Outflows ($) Project Life (years) Project
Conduct a cost-benefit analysis for an investment project.
Investment Project | Initial Investment ($) | Annual Cash Inflows ($) | Annual Cash Outflows ($) | Project Life (years) |
Project A | $500,000 | $150,000 | $80,000 | 5 |
Requirements:
Calculate the net present value (NPV) of the investment project using a discount rate of 10%.
Determine the internal rate of return (IRR) and payback period for Project A.
Discuss the financial viability and strategic considerations of investing in Project A.
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Accounting Information Systems
Authors: Marshall B. Romney, Paul J. Steinbart
12th edition
132552620, 978-0132552622
