Question
Project M has a cost of $89,125, expected net cash inflows are $20,000 per year for 10 years, and a cost of capital of 12%.
Project M has a cost of $89,125, expected net cash inflows are $20,000 per year for 10 years, and a cost of capital of 12%. Answer the following questions:
What is the projects payback period (to the closest year)? What is the projects discounted payback period? What is the projects NPV? What is the projects IRR? What is the projects MIRR? (assuming the reinvestment rate is same as the cost of capital)
Based on the answers, should the project be accepted? Why or why not?
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Financial Markets And Corporate Strategy
Authors: David Hillier , Mark Grinblatt , Sheridan Titman
2nd Edition
0077129423,0077141350
