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Consider the following cash flow. Assume that the discount rate is 15% (20 points) Time (years) Cash Flow 0 -1000 1.5 400 2 400 5
Consider the following cash flow. Assume that the discount rate is 15% (20 points)
Time (years) Cash Flow 0 -1000 1.5 400 2 400 5 500
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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