Question
You are considering building a shopping mall. The initial investment is $1.51 million. The cash flows are $480,000 for year 1, 260,000 for year 2,
You are considering building a shopping mall. The initial investment is $1.51 million. The cash flows are $480,000 for year 1, 260,000 for year 2, $140,000 for year 3, and $100,000 for year 4. What are the net present value (NPV) and profitability index (PI) of the project if the cost of capital is 7 %? Compute the internal rate of return (IRR) for the project.
What is the NPV of the shopping mall? $ (Round to the nearest cent.)
What is the PI of the shopping mall? (Round to two decimal places.)
What is the IRR of the shopping mall? % (Round to two decimal places.)
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