Question
Consider an investment project with the following estimated cash flows: Year Cash Flow 0 (28,000) 1 12,000 2 15,000 3 11,000 a. The required return
Consider an investment project with the following estimated cash flows:
| Year | Cash Flow |
|---|---|
| 0 | (28,000) |
| 1 | 12,000 |
| 2 | 15,000 |
| 3 | 11,000 |
a. The required return for this project is 14%. What is the projects NPV?
b. Assuming cash flows are spread evenly over each year, what is the Payback Period (PB) for the project?
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Financial Statement Analysis & Dividend Investing
Authors: Andrew P.C.
1st Edition
1075873940, 978-1075873942
