Question

A project has an initial cost of $42,200, expected net cash inflows of $12,000 per year...

A project has an initial cost of $42,200, expected net cash inflows of $12,000 per year for 9 years, and a cost of capital of 13%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places.

A project has an initial cost of $56,300, expected net cash inflows of $14,000 per year for 9 years, and a cost of capital of 11%. What is the project's payback period? Round your answer to two decimal places.

A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 9 years, and a cost of capital of 11%. What is the project's discounted payback period? Round your answer to two decimal places.

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Answer #1
Project
Discount rate 0.13
Year 0 1 2 3 4 5 6 7 8 9
Cash flow stream -42200 12000 12000 12000 12000 12000 12000 12000 12000 12000
Discounting factor 1 1.13 1.2769 1.442897 1.6304736 1.842435 2.081952 2.352605 2.658444 3.004042
Discounted cash flows project -42200 10619.47 9397.76 8316.602 7359.8247 6513.119 5763.822 5100.728 4513.918 3994.618
NPV = Sum of discounted cash flows
NPV Project = 19379.86
Where
Discounting factor = (1 + discount rate)^(Corresponding period in years)
Discounted Cashflow= Cash flow stream/discounting factor
PI= (NPV+initial inv.)/initial inv.
=(19379.86+42200)/42200
1.46
Please ask remaining parts seperately, questions are unrelated,
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