Question: 1124. (Payback period, net present value, profitability index, and internal rate of return calculations) You are considering a project with an initial cash outlay of

1124. (Payback period, net present value, profitability index, and internal rate of return

calculations) You are considering a project with an initial cash outlay of $80,000 and

expected cash flows of $20,000 at the end of each year for six years. The discount rate

for this project is 10 percent.

a. What are the projects payback and discounted payback periods?

b. What is the projects NPV?

c. What is the projects PI?

d. What is the projects IRR?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!