Question
Given the following information about the cash flows of a project that lasts for 6 years, answer the next 3 questions. The initial outlay
Given the following information about the cash flows of a project that lasts for 6 years, answer the next 3 questions. The initial outlay is $100,000, incremental cash flows for the next 6 years are $20,000, $30,000, $40,000, $40,000, $70,000, and $70,000. The discount rate is 13%. 1. What is the pay back period of the project 2. What is the NPV of the project? 3. What is the IRR of the project?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
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