Question
Consider a project with the following project cash flows. Year 0 1 2 3 4 Project Cash Flow -50,000 60,000 0 -32000 1,000,000 Among the
Consider a project with the following project cash flows.
Year 0 1 2 3 4
Project Cash Flow -50,000 60,000 0 -32000 1,000,000
Among the four decision criterions - Payback period, Profitability Index, Net Present Value, Internal Rate of Return,
Which decision criterion may not be appropriate for the capital budgeting analysis?
Project WACC= 8%
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
