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Brooyklyn, Inc is investing $400,000 in a new project. The project is expected to generate the...

Brooyklyn, Inc is investing $400,000 in a new project. The project is expected to generate the following net annual cash flows over the next 4 years. Assume a cost of capital of 12%.

Year Net Clash Flow
1 $150,000
2 $175,000
3 $200,000
4 $250,000

A. Calculate the project's conventional payback period?

B. Calculate project's NPV?

C. Calculate the project's PI?

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Answer #1

YEAR 1 Cash flows -$400,000 $150,000 $175,000 $200,000 $250,000 cumulative cash flows pv @ 12% Discounted cash flows -$400,00

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