Question
You are considering building a shopping mall. The initial investment is $1.55 million. The cash flows are $460,000 for year 1, $300,000 for year 2,
You are considering building a shopping mall. The initial investment is
$1.55
million. The cash flows are
$460,000
for year 1,
$300,000
for year 2,
$130,000
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
11%?
Compute the internal rate of return (IRR) for the project.
What is the NPV of the shopping mall?
$nothing
(Round to the nearest cent.)
What is the PI of the shopping mall?
nothing
(Round to two decimal places.)
What is the IRR of the shopping mall?
nothing%
(Round to two decimal places.)
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