Question
Consider an investment project that costs $225,000 today, and will create the following cash flows received: $75,000 in one year, $120,000 in two years, $85,000
Consider an investment project that costs $225,000 today, and will create the following cash flows received:
$75,000 in one year,
$120,000 in two years,
$85,000 in three years,
$60,000 in four years.
The interest rate is 4%. Use this information to answer questions 5 8.
What is the net present value of this project, and would you accept or reject the project?
$73,576.82; reject the NPV is less than the cost of the project.
$534,915.07; accept because the NPV is greater than zero.
$84,915.07; accept because the NPV is greater than zero.
$534,915.07; reject because the NPV is more than the cost of the project
What is the payback period for this project?
What is the discounted payback period?
What is the internal rate of return, and should you accept or reject the project based only on the IRR?
please show me how to do on ba ii calculator
t.
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