Question
DD Industries is considering a $6,500 project, which has the following cash flows: Year Cash Flow 1 $2,000 2 $3,000 3 $3,000 4 $1,500 a.
DD Industries is considering a $6,500 project, which has the following cash flows: Year Cash Flow 1 $2,000 2 $3,000 3 $3,000 4 $1,500
a. What is the payback period?
b. If the cost of capital is 0.08, what is the NPV?
c. What is the IRR?
d. Name one disadvantage to IRR as a decision-making method in capital budgeting?
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Introduction To Financial Models For Management And Planning
Authors: James R Morris, John P Daley
2nd Edition
1498765041, 9781498765046
