Question
Your company is evaluating a new project that requires an initial outlay of $250,000. The project is expected to generate the following inflows: Year Cash
Your company is evaluating a new project that requires an initial outlay of $250,000. The project is expected to generate the following inflows:
Year | Cash Inflow |
1 | $70,000 |
2 | $80,000 |
3 | $90,000 |
4 | $100,000 |
a. Calculate the project's NPV if the cost of capital is 8%. b. Determine the IRR. c. Calculate the payback period. d. Evaluate the discounted payback period. e. Should the project be undertaken based on the NPV and IRR?
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Financial Accounting: A Business Process Approach
Authors: Jane L. Reimers
3rd edition
978-0136115274
