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Question 3.7 - ROI Analysis Assume that you are considering whether or not to invest in Project Raven that will cost $250,000 in initial investment
Question 3.7 - ROI Analysis Assume that you are considering whether or not to invest in Project Raven that will cost $250,000 in initial investment (Year O), $50,000 (Years 1 to 3), a total of $400,000. Your company requires a rate of return of 9%. You have projected future cash inflows (benefits) as follows (Year 0): $0, (Years 1 to 3) $160,000, a total of $480,000 Calculate discounted inflows (benefits) and outflows (costs), and the ROI to determine if the project is worth investment
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