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Question2 (5 marks) Consider the following cash flows from different projects: (a) Calculate the payback period for each project. (b) Determine whether it is meaningful
Question2 (5 marks) Consider the following cash flows from different projects: (a) Calculate the payback period for each project. (b) Determine whether it is meaningful to calculate a payback period for project D. (c) Calculate the discounted payback period for each project. (d) Calculate the NPV of each project. (e) Calculate the IRR of each project (Note: assume that the discount rate is 10%)
(5 marks) Consider the following cash flows from different projects: Project's Cash Flow ($) 3,500 5,000 2,000 1,500 7,500 2,000 2,000 2,000 4,000 5,000 -1,000 5,000 3,000 200 200 200 1,000 1,000 2,000 3,000 200 200 (a) Calculate the payback period for each project. (b) Determine whether it is meaningful to calculate a payback period for project D (c) Calculate the discounted ayback period for each project. (d) Calculate the NPV of each project. e) Callate the IRR of each project Note: assume that the discount rate is 10%)
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