You are considering a project with an initial cash outlay of $ 85,000 and expected free...

You are considering a project with an initial cash outlay of $ 85,000 and expected free cash flows of $ 28,000 at the end of each year for 7 years. The required rate of return for this project is 9 percent.

a. What is the project's payback period?

b. What is the project's

NPV?

c. What is the project's

PI?

d. What is the project's

IRR?

Solutions

Expert Solution

Calculate the payback period, NPV, PI and IRR as follows:

Formulas:

jeff jeffy answered 10 months ago

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You are considering a project with an initial cash outlay of ​$ 85,000 and expected free...

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You are considering a project with an initial cash outlay of $ 85,000 and expected free...