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Investment Opportunity : Initial Investment: $400,000 Cash Flows: Year 1: $100,000 Year 2: $120,000 Year 3: $140,000 Year 4: $160,000 Requirements : Compute the NPV
- Investment Opportunity:
- Initial Investment: $400,000
- Cash Flows:
- Year 1: $100,000
- Year 2: $120,000
- Year 3: $140,000
- Year 4: $160,000
- Requirements:
- Compute the NPV at an 11% discount rate.
- Determine the IRR.
- Calculate the Payback Period.
- Evaluate the project’s PI.
- Assess the Sensitivity Analysis for a 2% change in discount rate.
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Financial Accounting Theory and Analysis Text and Cases
Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey
10th edition
470646284, 978-0470646281
