Question
Hi there I am currently going through this revision question and cannot answer any of the segments, if you can answer these for me please
Hi there I am currently going through this revision question and cannot answer any of the segments, if you can answer these for me please that would be great, thankyou
Company ABC is evaluating a project with the following cash flows:
Year CF
0 -$10,000
1 $2000
2 $3000
3 $4000
4$5000
5 $6000
Required
a)What is the payback period of the proposed project?
b)What is the NPV of the proposed project if the discount rate is 7%
c)What is the profitability index of the proposed project if the discount rate is 7%?
d)What is the IRR for the proposed project?
Note:Only the equation is required; it is not necessary to solve for IRR.
e)What is the discounted payback period of the proposed project if the discount rate is 7%?
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