Question
You are considering a project with an initial cash outlay of $70,000 and expected free cash flows of $15,500 at the end of each year
You are considering a project with an initial cash outlay of $70,000 and expected free cash flows of $15,500 at the end of each year for 5 years. The required rate of return for this project is 5.5 percent.
a. What is the payback period of the project?
b. What is the projects NPV?
c. What is the projects IRR?
d. f your firm has a required payback of 5 years and passing the IRR and NPV, would you accept this project? Explain.
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
