Question
For the project below, you have the following cash flows. The maximum payback period is 2 years and the cost of capital is 9%. Project
For the project below, you have the following cash flows. The maximum payback period is 2 years and the cost of capital is 9%.
Project Ace
Investment -950,000
CF 1 330,000
CF 2 400,000
CF 3 450,000
CF 4 200,000
Calculate the payback period. Do you accept the project?
Calculate the profitability index. Do you accept the project?
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Principles Of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter
13th Edition
9780132738729, 136119468, 132738724, 978-0136119463
