Question
Jills Hamburger Haven can purchase cooking equipment on sale for $4,600. The asset has a three-year life, will produce a cash flow of $1,800 in
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Jills Hamburger Haven can purchase cooking equipment on sale for $4,600. The asset has a three-year life, will produce a cash flow of $1,800 in the first year, $2,100 in the second year, and $2,600 in the third year. The cost of capital is 12%. What is the project's IRR?
A. 15.11%
B. 18.20%.
C. 20.48%
D. 13.04%
E. 16.92%
2. Jills Hamburger Haven can purchase cooking equipment on sale for $4,600. The asset has a three-year life, will produce a cash flow of $1,800 in the first year, $2,100 in the second year, and $2,600 in the third year. The cost of capital is 12%. What is the project's NPV?
A. | 848.66 | |
B. | $461.58 | |
C. | 725.32 | |
D. | $531.88 | |
E. | $737.27 |
3. Jills Hamburger Haven can purchase cooking equipment on sale for $4,600. The asset has a three-year life, will produce a cash flow of $1,800 in the first year, $2,100 in the second year, and $2,600 in the third year. The cost of capital is 12%. What is the project's Profitability Index?
A. | 1.16
| |
B. | 1.12 | |
C. | 1.20
| |
D. | 1.06 | |
E. | 1.28
|
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