Barclay plc is assessing an investment project. The estimated cash flows are as follows: The businesss cost
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Barclay plc is assessing an investment project. The estimated cash flows are as follows:
The business’s cost of finance is 15 percent p.a. and it seeks projects with a three year maximum discounted payback period.
Should the project be undertaken on the basis of NPV and discounted PBP?
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Year 0 81 2 3 4 m 10 5432 Outflow Inflow Inflow Inflow Inflow
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Barclay plc On the basis of NPV the project should be accepted since it i...View the full answer
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