Question
What is the Market Risk Premium if the required return of the market is 7%, risk free rate of 5% and inflation rate of 4.25%?
2- What is the Payback Period of a project with an initial cash outlay of $8,000 and total revenue of $3,000. The estimated life of the project is 5 years.
3- What is the NPV of the project:
Outlay: $10,000
Inflow per year: $2,000
Duration of project: 3 years
Discount rate: 10%
What is the Profitability Index of the project?
4- What is IRR of the project:
Outlay: $8,000
Inflow per year: $2,800
Duration of project: 4 years
Discount rate: 6%
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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1285190904, 978-1305176348, 1305176340, 978-1285190907
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