Question
please help with both 7. Your company is considering a project with the following projected cash flows. Calculate the project's DISCOUNTED payback period (in years).
please help with both
7.
Your company is considering a project with the following projected cash flows. Calculate the project's DISCOUNTED payback period (in years). Assume a discount rate of 7%
| Year | Cash Flow |
| 0 | -$1,100 |
| 1 | 550 |
| 2 | 465 |
| 3 | 381 |
| 4 | 425 |
Round intermediate values (present value of cash flows) to 4 decimal places of precision.
Enter your answer as a number with 2 decimal places of precision
27.
Which of the following statements is CORRECT?
| a. | An NPV profile graph is designed to give decision makers an idea about how a projects contribution to the firms value (NPV) varies with the cost of capital. | |
| b. | The NPV profile graph for a normal project will generally have a positive (upward) slope as the life of the project increases. | |
| c. | An NPV profile graph shows how a projects payback varies as the cost of capital changes. | |
| d. | An NPV profile graph is designed to give decision makers an idea about how a projects risk varies with its life. | |
| e. | None of the other responses provided are correct. |
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