Question
PrimusCorp. is planning to convert anexisting warehouse into a newplant that will increase its production capacity by 45 percent. The cost ofthis project will be$7,125,000.
PrimusCorp. is planning to convert anexisting warehouse into a newplant that will increase its production capacity by 45 percent. The cost ofthis project will be$7,125,000. It will result in additional cash flows of $1,875,000 for the next eight years. The company uses a discount rate of 12 percent.
a. What is the payback period?
b. What is the NPV for this project?
c. What is the IRR
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International financial management
Authors: Jeff Madura
13th edition
978-1337099738, 1337099732, 9781337515894, 1337515892, 978-1337587211
