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FNCE 623 Financial Management Individual assignment Agape Mining Inc. is evaluating a project with the following cash flows: Year Cashflow 0 -$380,000,000.00 1 $79,000,000.00 2
FNCE 623 Financial Management Individual assignment Agape Mining Inc. is evaluating a project with the following cash flows: Year Cashflow 0 -$380,000,000.00 1 $79,000,000.00 2 $82,000,000.00 3 -$53,000,000.00 4 $175,000,000.00 5 $195,000,000.00 6 -$40,000,000.00 7 $188,000,000.00 8 $71,000,000.00 - Construct a spreadsheet and calculate the following (the required rate of return is 11%): o Payback period o Discounted payback period o Internal rate of return (IRR) o Modified IRR The discounting approach The reinvestment approach The combination approach o Net present value (NPV) - Based on your analysis, should the company take the project? W
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