Question
Use the information to answer the following questions. A company is analyzing an independent project, S, whose cash flows are shown below: Year 0 Year
Use the information to answer the following questions. A company is analyzing an independent project, S, whose cash flows are shown below:
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |
---|---|---|---|---|---|
Cashflow | -100 | 60 | 35 | 30 | 20 |
The companys cost of capital is 9%, and it can get an unlimited amount of capital at that cost. What is the discounted payback period for Project S?
Select one:
a. 3.20 years
b. 2.67 years
c. 2.76 years
d. 2.33 years
e. 2.99 years
Continued from previous question. What is the internal rate of return (IRR) for Project S?
Select one:
a. 12.46%
b. 19.93%
c. 15.34%
d. 20.84%
e. 18.54%
Continued from previous question. What is the Net Present Value (NPV) of Project S?
Select one:
a. $21.84
b. $13.93
c. $20.72
d. $12.34
e. $6.42
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