Question
Year Cash Flow A Cash Flow B 0 -45,000 -90,000 1 17,000 19,000 2 23,000 24,000 3 19,000 35,000 4 5,000 250,000 WACC = 10%
Year Cash Flow A Cash Flow B
0 -45,000 -90,000
1 17,000 19,000
2 23,000 24,000
3 19,000 35,000
4 5,000 250,000
WACC = 10%
Calculate the payback
Calculate the IRR
Calculate the NPV
Calculate the Profitability Index
If you could only choose one project, which would you choose?
Without completing any calculations, if year 2 had negative cash flows, how would the IRR calculation differ?
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The Economics Of Money Banking And Finance
Authors: Peter Howells, Keith Bain
4th Edition
0273710397, 978-0273710394
