Question: 1) Calculate the project's NPV, PI, EAV, IRR and PB. (10%) ABC Corporation, a firm with a 8% required rate of return, is considering

 

1) Calculate the project's NPV, PI, EAV, IRR and PB. (10%) ABC

1) Calculate the project's NPV, PI, EAV, IRR and PB. (10%) ABC Corporation, a firm with a 8% required rate of return, is considering a new project. Given the following information, evaluate the project. Period 0 1 2 3 4 5 Free Cash -120 35 50 30 48 25 25 60 60 Flow NPV= EAV= Pl= IRR= PB= 2) Calculate the project's Crossover Point. (6%) Comparing two mutually exclusive projects, calculate the project's crossover rate and NPV. Period 0 1 2 3 4 5 3) Cash Flow A -150 80 80 80 80 Calcul Cash Flow B -80 30 40 50 60 60 70 Cash Flow A-B ate the project Crossover rate= 's Crossover NPV= (7)

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