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28 Sep 2019
Given the following cash flows, and a required return (cost of capital, risk-adjusted-discount-rate) of 15%, answer the questions below.
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Initial Outlay - ($350,000) RRR - 15%
OCF1 - $100,00
OCF2 - $100,00
OCF3 - $100,000
OCF4 - $100,000
OCF5 - $150,000
A) What is the projectâs projected Payback period? The firm's payback requirement is 2 years.
B) What is the projectâs projected NPV?
C) What is the projectâs projected Profitability index?
D) What is the projectâs projected internal rate of return?
E) Should this the firm invest in this project? Why or why not?
Given the following cash flows, and a required return (cost of capital, risk-adjusted-discount-rate) of 15%, answer the questions below.
'
Initial Outlay - ($350,000) RRR - 15%
OCF1 - $100,00
OCF2 - $100,00
OCF3 - $100,000
OCF4 - $100,000
OCF5 - $150,000
A) What is the projectâs projected Payback period? The firm's payback requirement is 2 years.
B) What is the projectâs projected NPV?
C) What is the projectâs projected Profitability index?
D) What is the projectâs projected internal rate of return?
E) Should this the firm invest in this project? Why or why not?
Elin HesselLv2
28 Sep 2019