Question
Having calculated the WACC( 9.26% ) in the previous question, use that number to calculate the answer to the following question. Rodgers Corporation is looking
Having calculated the WACC( 9.26% ) in the previous question, use that number to calculate the answer to the following question.
Rodgers Corporation is looking at a potential new project. The initial cash outlay for this project would be $11,000. The project is expected to have a 5-year life. The cash flows for the project are as follows:
Year 1: $5,200
Year 2: $4,000
Year 3: $2,300
Year 4: $1,500
Year 5: $1,200
Using the calculator, please compute:
NPV
IRR
Profitability Index (PI)
MIRR
Regular Payback Period
Discount Payback Period.
Should the company accept the project and why?
NPV =
IRR =
PI =
MIRR =
Regular Payback =
Discounted Payback =
Should the company go forward with the project?
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