A project has an initial investment of $500,000. If the expected cash inflows from the project are $200,000 in year 1, $190,000 in year 2, $170,000 in year 3, and $150,000 in year 4, what is the projectâs payback? If the firmâs hurdle payback rate were 2.5 years, would you accept the project?
1a. Refer to problem #1. If the firmâs cost of capital is 14.5%, what is the projectâs net present value? Based on this, would you accept the project?
1b. Refer to problem #1. What is the projectâs profitability index (cost of capital = 14.5%)? Based on this, would you accept the project?
1c.Refer to Problem #1. What is the projectâs internal rate of return? If the cost of capital is 14.5% would you accept the project?
1d.Refer to Problem #1. What is the projectâs modified internal rate of return if the cost of capital is 14.5%. Would you accept this problem?
please answer by hand/ equation. Thank you very much for your time and attention.
A project has an initial investment of $500,000. If the expected cash inflows from the project are $200,000 in year 1, $190,000 in year 2, $170,000 in year 3, and $150,000 in year 4, what is the projectâs payback? If the firmâs hurdle payback rate were 2.5 years, would you accept the project?
1a. Refer to problem #1. If the firmâs cost of capital is 14.5%, what is the projectâs net present value? Based on this, would you accept the project?
1b. Refer to problem #1. What is the projectâs profitability index (cost of capital = 14.5%)? Based on this, would you accept the project?
1c.Refer to Problem #1. What is the projectâs internal rate of return? If the cost of capital is 14.5% would you accept the project?
1d.Refer to Problem #1. What is the projectâs modified internal rate of return if the cost of capital is 14.5%. Would you accept this problem?
please answer by hand/ equation. Thank you very much for your time and attention.
