Question

3. (5 pts) Create a cash flow for a simple investment project with a 4-year life that produces a discounted payback of 3 years and an IRR of 8%/year if the MARR is 4%.

Answer 1

1 Create a cash flow for a simple investment Project with a-4 year lite that produces a discounted Payback of 3 years and an IRR of 87. seal po the MARR is 4%. ANSWER: From the given data we have a 3 ಸ್ತ್ರೀಯ $2,500-00 $-,10,278:22 $ $ nitial Investment $-40,000.00 8-60,000.00 $1,80,000.00 $ - 160,000.00 yearly Charges Revenue $ 70,000-00 $1,00,ODD-00 $1,30,000.00 $90,000.00 $ -1,10 218.92 $30,000.00 $ 40,000.00 $50,000.00 $12,500.00 Wet cash flow factor as = (1+47)ject I 1.00 ou 1 108 I 1.12 1 Cash Flow LOCS Discounting $-1,10,278-22 828,846.15$ 36,982-25 $44, 049.82 $10,686,05 117 . Vounting of PV Factor $1,10,278-22 $ -81, 432.07 $-44,449.84 $ 0.00 1910,685.05 Cumulative pv TRR 8% Payback period 13 years * Please rate