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Table 2.2 Initial Outlay $6,000 Year 1 Cash Flow $2,000 Year 2 Cash Flow $2,000 Year 3 Cash Flow $2,000 Year 4 Cash Flow $2,000
Table 2.2
Initial Outlay | $6,000 |
Year 1 Cash Flow | $2,000 |
Year 2 Cash Flow | $2,000 |
Year 3 Cash Flow | $2,000 |
Year 4 Cash Flow | $2,000 |
Year 5 Cash Flow | $2,000 |
Requirements:
- Compute the NPV with a cost of capital of 14%.
- Determine the IRR.
- Evaluate if the project should be accepted based on NPV.
- Calculate the Payback Period.
- Determine the project’s PI.
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Financial Modeling
Authors: Simon Benninga
4th Edition
0262027283, 9780262027281
