Question
Winston Clinic is evaluating a project that costs $52,125 and has expected net cash inflows of $12,000 per year for eight years. The first inflow
Winston Clinic is evaluating a project that costs $52,125 and has expected net cash inflows of $12,000 per year for eight years. The first inflow occurs one year after the cost outflow, and the project has a cost of capital of 12 percent.
A. What is the projects payback?
Payback Period = Investment / Constant Annual Cash Flow
= $52,125 / 12,000
= 4.34 years
B. What is the projects NPV? Its IRR? Its MIRR?
****Can you please NOT use excel. I need to see step by step how you calculate the answers to B.*******
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Financial Management Principles And Practice
Authors: Timothy J. Gallagher, Joseph D. Andrew
3rd Edition
0131768824, 978-0131768826
