Question: Risky Business is looking at a project with the estimated

Risky Business is looking at a project with the estimated cash flows as follows:
Initial Investment at start of project: $3,600,000
Cash Flow at end of Year 1: $500,000
Cash Flow at end of Years 2 through 6: $625,000 each year
Cash Flow at end of Year 7 through 9: $530,000 each year
Cash Flow at end of Year 10: $385,000

Risky Business wants to know payback period, NPV, IRR, MIRR, and PI of this project. The appropriate discount rate for the project is 14%. If the cutoff period is six years for major projects, determine whether management at Risky Business will accept or reject the project under the five different decision models.




Sale on SolutionInn
Sales0
Views127
Comments
  • CreatedMay 08, 2014
  • Files Included
Post your question
5000