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From Scenario 2, what are your recommendations on the investment project? Explain your reasoning. (NPV, IRR, PI, etc.) Annual cash inflows: Year 1 $6,000 Year
From Scenario 2, what are your recommendations on the investment project? Explain your reasoning. (NPV, IRR, PI, etc.)
| Annual cash inflows: | |||
| Year 1 | $6,000 | ||
| Year 2 | 5,500 | ||
| Year 3 | 7,000 | ||
| Year 4 | 8,000 | ||
| Discount rate | 14% | ||
| Initial cost | $15,000 | ||
| . | |||
| Initial cost | $12,000 | ||
| Initial cost | $16,000 | ||
| Output area: | |||
| Discounted payments: | |||
| Year 1 | $5,263.16 | ||
| Year 2 | $4,232.07 | ||
| Year 3 | $4,724.80 | ||
| Year 4 | $4,736.64 | ||
| Payback period | 3.16 | ||
| Payback period | 2.53 | ||
| Payback period | 3.38 | ||
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Financial Statements
Authors: Inc. BarCharts
1st Edition
1423223837, 978-1423223832
