FIN 370 Chapter 11-24 Week 4 (***** 100% Correct a,b,c,d + Calculation *****)
Payback period, net present value, profitability index, and internal rate of return calculations) You are considering a project with an initial cash outlay of $80,000 and expected cash flows of $20,000 at the end of each year for six years. The discount rate for this project is 10%.
a. What are the project’s payback and discounted payback periods?
b. What is the project’s NPV?
c. What is the project’s PI?
d. What is the project’s IRR?
FIN370 Chapter 11-24 Week 4
FIN 370 Chapter 11 problem 24 Week 4
FIN 370 Week 4 Chapter 11-24
FIN370 Week 4 Chapter 11-24