Question
You are evaluating an investment project, Project VV, with the following cash flows: Period End-of-period cash flow 0 $100,000 1 20,000 2 40,000 3 60,000
You are evaluating an investment project, Project VV, with the following cash flows: Period End-of-period cash flow 0 $100,000 1 20,000 2 40,000 3 60,000 Calculate the following: (a) Payback period (b) Discounted payback period, assuming a 5% cost of capital (c) Discounted payback period, assuming a 10% cost of capital (d) Net present value, assuming a 5% cost of capital (e) Net present value, assuming a 10% cost of capital (f) Profitability index, assuming a 5% cost of capital (g) Profitability index, assuming a 10% cost of capital (h) Internal rate of return
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