Question
PROJECT A: r = 11% Year 0: ($24,000); Year 1: $12,500; Year 2: ($2,000); Year 3: $15,000; Year 4: ($1,000); Year 5: $6,000 PROJECT B:
PROJECT A: r = 11%
Year 0: ($24,000); Year 1: $12,500; Year 2: ($2,000); Year 3: $15,000; Year 4: ($1,000); Year 5: $6,000
PROJECT B: r = 13%
Year 0: ($12,500); Year 1: $7,000; Year 2: $6,000; Year 3: $5,000; Year 4: ($1,000)
For each project, calculate the PAYBACK, DISCOUNTED PAYBACK, NET PRESENT VALUE, PROFITABILITY INDEX, EQUIVALENT ANNUAL ANNUITY, and the MODIFIED INTERNAL RATE OF RETURN.
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Dark Finance
Authors: Fabio Mattioli
1st Edition
1503611655, 978-1503611658
