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how to solve using this equation 3. You are considering a project with an initial cost of $7,800. What is the payback period for this
how to solve using this equation
3. You are considering a project with an initial cost of $7,800. What is the payback period for this project if the cash inflows are $1,100, $1,640, $3,800, and $4,500 a year over the next four years, respectively? 42. Amuelenjamiatwe na cest Chapter 8: Capital Budgeting Net Present Value (NPV) NPV = PV(CF Inflor) - PV(CF Outflow) = n Internal Rate of Return (IRR) CF, Inflows (1 + IRR)" (1 + IRR)" CF Outflows h h = h n h=0 h=0 11 = | CF,hows P= (1 + i)" CF,Outflows hao (1+i)" l=0 When you have a single cash outflow at tro: At IRR, PVC pinflow)=PVC Foutflow) When you have a single cash outflow at t=0: CF Inflows = (1 + IRR) 77 n - Cost - NPV = , CF Inflows Initial Investment (or Cost) = 3 (1 + i)" h=0 h=oStep by Step Solution
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