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Consider the following projects A and B: A B C D E 1 Cost of Capital: r= 8% 2 T= 0 1 2 3 3
Consider the following projects A and B:
| A | B | C | D | E |
1 | Cost of Capital: r= | 8% | |||
2 | T= | 0 | 1 | 2 | 3 |
3 | Project | C0 | C1 | C2 | C3 |
4 | A | -200 | 90 | 130 | 100 |
Please answer the following questions.
a. What is the project's NPV? (sample answer: 127.50)
b. What is the payback period? (sample answer: 1.38 years)
c. What is the discounted payback period? (sample answer: 1.38 years) d. What is the IRRs? (sample answer: 13.85%)
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