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HAVE FIVE QUESTION . thankyou for your help 1. A power plant investment project has the following capital expenditures during a 5-year construction period: Unit:
HAVE FIVE QUESTION . thankyou for your help
1. A power plant investment project has the following capital expenditures during a 5-year construction period: Unit: $ Million Year 1 2 3 4 5 Construction 50 100 120 150 100 Expenditure When the construction is completed, the project will have an annual net cash flow of $70 million for 10 years. Suppose the project is fully funded by equity, and the cost of equity is 18%. Please find out the following investment criteria: (each 12%, 60% in total) (1) IRR (2) Modified IRR (3) NPV (4) Traditional payback period (5) Discounted payback period 1. A power plant investment project has the following capital expenditures during a 5-year construction period: Unit: $ Million Year 1 2 3 4 5 Construction 50 100 120 150 100 Expenditure When the construction is completed, the project will have an annual net cash flow of $70 million for 10 years. Suppose the project is fully funded by equity, and the cost of equity is 18%. Please find out the following investment criteria: (each 12%, 60% in total) (1) IRR (2) Modified IRR (3) NPV (4) Traditional payback period (5) Discounted payback periodStep by Step Solution
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