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Distinction Ltd. (DL) a maker of heavy duty machinery is considering investing in a project that requires a 17% minimum rate of return and a
- Distinction Ltd. (DL) a maker of heavy duty machinery is considering investing in a project that requires a 17% minimum rate of return and a one-time equipment cost of $150,000.00 which will be spent today. DL owes $50,000.00 for feasibilty studies and consultant fees which were previously undertaken. You decide to analyze the project over the first 5 years. Below is an extract from the projects financials
YEAR | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 |
Cash Flow | $70,000 | $70,000 | $70,000 | $70,000 | $70,000 |
Calculate the Payback Period, PI and IRR of the project
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