Question

In: Finance

You are considering a project with an initial cash outlay of ​$87000 and expected cash flows...

You are considering a project with an initial cash outlay of ​$87000 and expected cash flows of ​$23490 at the end of each year for six years. The discount rate for this project is 10.1 percent.
a. What are the​ project's payback and discounted payback​ periods?
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)

Project Payback Period = Initial Outlay / Annual Cash flow = $87,000 / $23,490 = 3.704 Years

Project Discounted Payback Period =

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