Question
In: Finance
(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 $80,000 and
expected free cash flows of $24,000 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?
3.33 years
b. What is the project's NPV?
____
c. What is the project's PI?
_____
d. What is the project's IRR?
_____
Solutions
Expert Solution
Solution :
a. The Project's Payback period = 3.33 years
b. The Project's NPV= $ 53,977.15
c. The Project's PI = 1.6747
d. The Project's IRR = 22.93 %
Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.
jeff jeffy answered 9 months agoRelated Solutions
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