Question
Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years. The required return is 9%, and required
Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years.
The required return is 9%, and required payback is 4 years.
- What is the payback period?
" What is the discounted payback period?
"What is the NPV?
- What is the IRR?
" Should we accept the project?
- What decision rule should be the primary decision method?
- When is the IRR rule unreliable?
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Financial Markets And Institutions
Authors: Jeff Madura
5th Edition
0324027443, 9780324027440
