Question
The project below has an initial cash outlay of $3,500,000. The expected cash inflows are: Year NOCFt 1 $1,200,000 2 $1,500,000 3 $1,100,000 4 $950,000
The project below has an initial cash outlay of $3,500,000. The expected cash inflows are:
Year NOCFt
1 $1,200,000
2 $1,500,000
3 $1,100,000
4 $950,000
5 $890,000
A) Determine the profitability index at a 10.2% WACC.
B) Calculate the payback period.
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Finite Mathematics and Its Applications
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair
12th edition
978-0134768588, 9780134437767, 134768582, 134437764, 978-0134768632
