Question
Zeta Corporation is analyzing a project that requires an initial investment of USD 200,000 and is expected to generate the following cash flows: Year Cash
Zeta Corporation is analyzing a project that requires an initial investment of USD 200,000 and is expected to generate the following cash flows:
Year | Cash Flows |
Initial Investment | (200,000) |
1 | 70,000 |
2 | 60,000 |
3 | 80,000 |
4 | 90,000 |
Requirements: a. Determine the payback period. b. Calculate the NPV if the cost of capital is 8%. c. Assess the profitability of the project using the IRR.
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Principles Of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter
13th Edition
9780132738729, 136119468, 132738724, 978-0136119463
