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Question 9: You are considering a project with an initial cash outlay and expected free cash flows at the end of each year for 5
Question 9: | ||
You are considering a project with an initial cash outlay and expected free cash flows at the end of each year for 5 years, and the required rate of return for this project as stated below: | ||
Length of Project | 5 years | |
Expected Free Cash Flows at the end of each year | 26 000 | |
Initial Cash Outlay | 115 000 | |
Required Rate of Retrun | 10,00% | |
a) What is the projects payback period? Would you accept/reject the project if the maximum acceptable payback period is 5 years? | ||
b. What is the projects discounted payback period? Would you accept/reject the project if the maximum acceptable discounted payback period is 4 years? | ||
c. What is the projects NPV? Would you accept/reject the project? | ||
d. What is the projects PI? Would you accept/reject the project? | ||
f. What is the projects IRR? Would you accept/reject the project? | ||
f. What is the projects MIRR if the re-investment rate is 9 percent? Would you accept/reject the project? | ||
Have anyone solved Similair Probelms in Excel and can go through the steps to solving this?
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