Question
Given the following cash flows, and a required return (cost of capital, risk-adjusted-discount-rate) of 15%, answer the questions below. ' Initial Outlay - ($350,000) RRR
Given the following cash flows, and a required return (cost of capital, risk-adjusted-discount-rate) of 15%, answer the questions below.
'
Initial Outlay - ($350,000) RRR - 15%
OCF1 - $100,00
OCF2 - $100,00
OCF3 - $100,000
OCF4 - $100,000
OCF5 - $150,000
A) What is the projects projected Payback period? The firm's payback requirement is 2 years.
B) What is the projects projected NPV?
C) What is the projects projected Profitability index?
D) What is the projects projected internal rate of return?
E) Should this the firm invest in this project? Why or why not?
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The AMA Handbook Of Financial Risk Management
Authors: John J. Hampton
1st Edition
0814417442, 978-0814417447
