(Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash...

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(Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash...

(Payback period, NPV, PI, and IRR calculations) You are considering

a project with an initial cash outlay of $85.000 and expected free cash flows of $20,000 at the end of each year for 7 years. The required rate of return for this project is 6 percent.

a. What is the project's payback period?

b. What is the project's NPV?

c. What is the project's PI?

d. What is the project's IRR?

business finance

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Answer 1

Answer #1

YEAR cash flows pv @ 6% -$85,000 1.0000 $20,000 0.9434 $20,000 0.8900 $20,000 0.8396 1 7 4 $20,000 0.7921 18 5 $20,000 0.7473

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Answer 2

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