Question: 1) What is Project C's NPV? 2) What js Project C's IRR? 3) What is Project C's Payback Period? 4) What is Project C's PI?
You will be evaluating three projects for Hoth Inc. Hoth's cost of capital or discount rate is 10%. The first project (A) will cost $90,000 initially. The project will then return cash flows of $25,000 for 4 years. The second project (B) will cost $90,000 initially. The project will then return cash flows of $5,000 in year 1, $15,000 in year 2, and $100,000 in year 3. The third project (C) will cost $50,000 initially. The project will then return cash flows of $10,000 for 3 years and then $39,000 for one one year after that
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