Question
Work out the problem please! 1) Consider a project that costs $100,000 today and produces net cash flows of $30,000 in year 1, $40,000 in
Work out the problem please!
1) Consider a project that costs $100,000 today and produces net cash flows of $30,000 in year 1, $40,000 in year 2 and $50,000 in year 3. a. What is the NPV of the project if the relevant discount rate is 6%? Should this project be accepted? b. What is the NPV of the project if the relevant discount rate is 10%? Should this project be accepted? c. What is the IRR of this project? d. What is the payback period of this project?
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Financial Management Theory And Practice
Authors: Prasanna Chandra
7th Edition
0070656657, 978-0070656659
