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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Introduction To Financial Accounting
Authors: Anne Marie Ward, Andrew Thomas
7th edition
77138449, 978-0077132682, 77132688, 978-0077138448
