Question
The following table shows the cash flow of A Company. The construction period is 90 and 1991, and there is capital expenditure in these two
The following table shows the cash flow of A Company. The construction period is 90 and 1991, and there is capital expenditure in these two years; the operating period is 91 to 93. The required rate of return for this project is 10% (present value in parentheses in the cash flow statement).
| Project year | 0 | 1 | 2 | 3 |
| years | 90 | 91 | 92 | 93 |
| Capital expenditures | -900 | -300 (-273) |
|
|
| Operating cash flow | 0 | 360 (327) | 420 (347) | 460 (346) |
The current time is 90 years. Try to calculate the number of payback periods, NPV value and profitability index (PI)?
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Options Futures And Other Derivatives
Authors: John Hull
11th Global Edition
1292410655, 9781292410654
