Question
(Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash outlay of $70,000 and expected free cash flows of
(Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash outlay of $70,000 and expected free cash flows of $22,000 at the end of each year for 5 years. The required rate of return for this project is 9 percent.
a. What is the project's payback period?
b. What is the project's NPV?
c. What is the project's PI?
d. What is the project's IRR?
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
17th Edition
126001391X, 978-1260013917
