Given the following information about the cash flows of a project that lasts for 6 years,...

 

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Given the following information about the cash flows of a project that lasts for 6 years, answer the next 3 questions. The initial outlay is $100,000, incremental cash flows for the next 6 years are $20,000, $30,000, $40,000, $40,000, $70,000, and $70,000. The discount rate is 13%. 1. What is the pay back period of the project 2. What is the NPV of the project? 3. What is the IRR of the project? Given the following information about the cash flows of a project that lasts for 6 years, answer the next 3 questions. The initial outlay is $100,000, incremental cash flows for the next 6 years are $20,000, $30,000, $40,000, $40,000, $70,000, and $70,000. The discount rate is 13%. 1. What is the pay back period of the project 2. What is the NPV of the project? 3. What is the IRR of the project?

Answer rating: 100% (QA)

To calculate the payback period NPV and IRR of the project we will use the provided information and formulas Lets calculate them step by step 1 Paybac... View the full answer