Question
Theta Innovations is considering investing in a project with the following cash flows: Year Cash Flows Initial Investment (100,000) 1 25,000 2 35,000 3 45,000
Theta Innovations is considering investing in a project with the following cash flows:
Year | Cash Flows |
Initial Investment | (100,000) |
1 | 25,000 |
2 | 35,000 |
3 | 45,000 |
4 | 55,000 |
Requirements: a. Compute the payback period for the project. b. Calculate the NPV if the discount rate is 6%. c. Should Theta Innovations undertake the project based on the NPV and payback period?
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Corporate Financial Management
Authors: Glen Arnold
5th edition
978-1292178066, 129217806X, 273758837, 978-0273758839
