Question
Year CF 0 -25,000,000 1 7,000,000 2 7,000,000 3 7,000,000 4 7,000,000 5 5,000,000 The Burb Corporation is evaluating the following project. The CFO has
Year | CF |
0 | -25,000,000 |
1 | 7,000,000 |
2 | 7,000,000 |
3 | 7,000,000 |
4 | 7,000,000 |
5 | 5,000,000 |
The Burb Corporation is evaluating the following project. The CFO has determined that the appropriate risk-adjusted discount rate is 9%.
1.a Calculate the net present value for the project. (Round to 2 decimals)
1.b Calculate the internal rate of return for the project. (Enter percentages as decimals and round to 4 decimals)
1.c Calculate the profitability index for the project. (Round to 4 decimals).
1.d Calculate the payback period for the project. (Round to 3 decimals)
1.e Calculate the discounted payback period for the project. (Round to 3 decimals)
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