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You are given a project with the following projected cash flows Year 0 = 800,000 Year 1 = 300,000 Year 2 = 300,000 Year 3
You are given a project with the following projected cash flows Year 0 = 800,000 Year 1 = 300,000 Year 2 = 300,000 Year 3 = 300,000 Year 4 = 300.000 The CEO has determined that if the payback period or discounted payback period method is used for evaluation any project must pay back within 3 years to be accepted. Would you accept or reject the project using the payback method of evaluation? A. Accept B. Not enough information provided to decide c. Indifferent between accepting and rejecting D. Reject How long does this project take to pay back using the discounted payback period method, assuming a 11% discount rate? Round your answer to the nearest tenth of a year (i.e. 5.5 years). years What is the NPV of this project at a 10% discount rate? Please round your answer to the nearest dollar
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