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Scenario: Consider the following financial information for a project: Initial Investment: $20,000 Cost of Capital: 14% Project Life: 6 years Year Cash Flows 1 $5,000
Scenario: Consider the following financial information for a project:
- Initial Investment: $20,000
- Cost of Capital: 14%
- Project Life: 6 years
Year | Cash Flows |
1 | $5,000 |
2 | $6,000 |
3 | $7,000 |
4 | $8,000 |
5 | $9,000 |
6 | $10,000 |
Requirements:
- Calculate the NPV.
- Calculate the IRR.
- Compute the Modified Internal Rate of Return (MIRR).
- Determine the Discounted Payback Period.
- Calculate the PI.
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Precalculus
Authors: Michael Sullivan
9th edition
321716835, 321716833, 978-0321716835
