Question
In: Finance
You are considering a project with an initial cash outlay of $75,000 and expected free cash...
You are considering a project with an initial cash outlay of $75,000 and expected free cash flows of $22,000 at the end of each year for 6 years. The required rate of return for this project is 8 percent. What is the project's NPV? What is the project's PI? What is the project's IRR?
Solutions
Expert Solution
| Year | Cash flow |
| 0 | -$75,000 |
| 1 | 22,000 |
| 2 | 22,000 |
| 3 | 22,000 |
| 4 | 22,000 |
| 5 | 22,000 |
| 6 | 22,000 |
| Rate of return | 8.00% |
| NPV | 26,703.35 |
| PI | 1.36 |
| IRR | 19.01% |
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jeff jeffy answered 1 year agoRelated Solutions
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