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Consider the following cash flow. Assume that the discount rate is 15%. Time (years) 0 1.5 2 5 CASH FLOW -1000 400 400 500 a)
Consider the following cash flow. Assume that the discount rate is 15%.
Time (years) | 0 | 1.5 | 2 | 5 |
CASH FLOW | -1000 | 400 | 400 | 500 |
a) Obtain NPV. Interpret the result.
b) Obtain payback. Interpret the result.
c) Obtain discounted payback. Interpret the result.
d) Obtain IRR. Interpret the result.
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