Question
If a project will last 8 years and the the project cost is $2,200,000, the after-tax cash flow per year is Y1 $487,250; Y2 $543,345;
If a project will last 8 years and the the project cost is $2,200,000, the after-tax cash flow per year is Y1 $487,250; Y2 $543,345; Y3 605,371.90; Y4 673,930.34; Y5 749,680.04; Y6 833,346.86; Y7 925,729.32; Y8 1,027,705.99
No discount rate given, but the cost of capital is $195,000. Then, what is the NPV, the IRR, and the profitability index?
Please show calculation steps without excel. I need to make sure that I understand how to calculate for this. Thanks!
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Elements Of Financial Risk Management
Authors: Peter Christoffersen
2nd Edition
0128102357, 9780128102350
