Question
Your company is considering an expansion into a new product line. The project cash flows are as follows: Year Project A 0 -$60,000 1 44,000
Your company is considering an expansion into a new product line. The project cash flows are as follows:
| Year | Project A |
| 0 | -$60,000 |
| 1 | 44,000 |
| 2 | 20,000 |
| 3 | 14,000 |
The required return for this project is 10%.
A.) What is the NPV for the project?
B.) What is IRR for the project?
C.) What is the payback period for the project?
D. What is the Profitability Index (PI) for the project?
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Auditing And Edp Objective Questions And Explanations
Authors: Irvin N. Gleim, William A. Hillison
5th Edition
0917537521, 978-0917537523
