Morison Cars Inc. has a new project with a cost of $480,000 and annual cash flows of
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Question:
Morison Cars Inc. has a new project with a cost of $480,000 and annual cash flows of $154,000 for 5 years. The cost of capital for the project is 15%. Calculate (i) net present value, (ii) discounted payback period, (iii) profitability index. Make a decision in each case and at the end (assume a benchmark period of 3.61 years)
Expert Answer:
To analyze the project well calculate the net present value NPV discounted payback period DPP and pr... View the full answer
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