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Year Cash Inflows Cash Outflows 0 $0 $6,500 1 $1,600 $0 2 $1,600 $0 3 $1,600 $0 4 $1,600 $0 5 $1,600 $0 Requirements: Calculate
Year | Cash Inflows | Cash Outflows |
0 | $0 | $6,500 |
1 | $1,600 | $0 |
2 | $1,600 | $0 |
3 | $1,600 | $0 |
4 | $1,600 | $0 |
5 | $1,600 | $0 |
Requirements:
- Calculate the NPV using a discount rate of 12%.
- Compute the IRR.
- Assess the project’s viability based on NPV.
- Calculate the Payback Period.
- Determine the effect on NPV if the discount rate changes to 14%.
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Managerial Accounting The Cornerstone Of Business Decision Making
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
8th Edition
0357715349, 978-0357715345
