Question
Consider a project with the following cash flows: Year t = 0 t =1 t = 2 t = 3 t = 4 ??? $7,500
Consider a project with the following cash flows:
Year t = 0 t =1 t = 2 t = 3 t = 4
??? $7,500 $12,500 $15,000 $17,500
The Payback Period of this project is 2.6 years. The appropriate discount rate is 13%. Find the Net Present Value of the project. (Note that the cash flow for t=0 is not provided to you - that is, you must first solve for it).
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Personal Finance Building Your Future
Authors: Robert B. Walker, Kristy P. Walker
1st edition
9780077861728, 978-0073530659
