Question: 2. Consider a project which has an initial cash outlay of $160,000 and cash inflows of $38,000 at the end of each year for eight
2. Consider a project which has an initial cash outlay of $160,000 and cash inflows of $38,000 at the end of each year for eight years. The cost of capital is 9%. a) Find the net present value of this project. (4 points) b) Would you accept this project using the net present value guideline? Explain your answer. (1 point) c) Find the profitability index for the project.(2 points) d) Find the undiscounted payback period for the project. ( 2 points)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
