Question
You are reviewing a capital project proposal. The project has an upfront cost of $1,410,000. The resulting positive cash flows over the next five years
You are reviewing a capital project proposal. The project has an upfront cost of $1,410,000. The resulting positive cash flows over the next five years are: $340,000, $426,000, $560,000, $790,000, and $480,000. The companys required return on investment is 14%. Instructions: Calculate the following: a) Net present value (nearest whole number without comma, e.g. 15000): Answer b) Internal rate of return (nearest 1/10 of 1% without % symbol, e.g. 5.6): Answer c) Discounted payback (1/100 of year, e.g. 5.15): Answer d) Profitability index (1/100 of whole number, e.g. 1.15): Answer e) Approve or reject project (choose one): Approve
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