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I mainly need a memo for these numbers I sent answering these questions What about Risk? Is this a risky venture? Suppose the cashflows do
I mainly need a memo for these numbers I sent answering these questions
What about Risk? Is this a risky venture? Suppose the cashflows do not materials this way?
Cash flow Year 0 1 2 3 4 5 $ $ $ $ $ O 000 NO A A A A A A A A A A (650,000,000) 80,000,000 121,000,000 162,000,000 221,000,000 210,000,000 154,000,000 108,000,000 86,000,000 (72,000,000) 7 8 9 $ $ $ Required return 12% Output area: Payback period 4.32 IRR 13%+.025% 13.25% Profitability index (.0.02) NPV $28,451,510 Write a memo wiht recomendation. Include these points as well. What about Risk? Is this a risky venture? Suppose the cash flows do not materialz this way? MEMOStep by Step Solution
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