Question
Payback period, net present value, profitability index, and internal rate of return calculations) You are considering a project with an initial cash outlay of $76
Payback period, net present value, profitability index, and internal rate of return calculations) You are considering a project with an initial cash outlay of $76 comma 000 and expected cash flows of $23 comma 560 at the end of each year for six years. The discount rate for this project is 10.5 percent.
a. What are the project's payback and discounted payback periods?
b. What is the project's NPV?
c. What is the project's PI?
d. What is the project's IRR?
a. The payback period of the project is
nothing years. (Round to two decimal places.)
If the discount rate for this project is 10.5%, the discounted payback period of the project is
nothing years. (Round to two decimal places.)
b. The project's NPV is $
(Round to the nearest dollar.)
c. The project's PI is
(Round to two decimal places.)
d. The project's IRR is
(Round to two decimal places.)
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