Question
Question 4: 14 Marks A project will require an initial investment of $580,000 and is expected to generate the following cash flows: Year 1 $
Question 4: 14 Marks
A project will require an initial investment of $580,000 and is expected to generate the following cash flows:
Year 1 $ 60,000
Year 2 250,000
Year 3 250,000
Year 4 200,000
Year 5 100,000
Instructions:
- What is the projects payback period? (4 marks)
- If the required rate of return is 20% and taxes are ignored, what is the projects net present value? (10 marks)
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Financial Management For Public Health And Not For Profit Organizations
Authors: Steven A. Finkler
3rd Edition
0136070736, 978-0136070733
