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Initial outlay: $4,000 Operating Cash Inflows: Year 1: $1,200, Year 2: $1,500, Year 3: $1,800, Year 4: $2,100, Year 5: $2,400 Cost of Capital: 12%
Initial outlay: $4,000
Operating Cash Inflows: Year 1: $1,200, Year 2: $1,500, Year 3: $1,800, Year 4: $2,100, Year 5: $2,400
Cost of Capital: 12%
- Compute the Net Present Value (NPV).
- Compute the Internal Rate of Return (IRR).
- Compute the Payback Period.
- Determine the Profitability Index (PI).
- Should the project be accepted?
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Managerial accounting
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
1st edition
471467855, 978-0471467854
