5) Q: Assume that it costs $1,000 to start a project. If the project will give...

 

 

Transcribed Image Text:

5) Q: Assume that it costs $1,000 to start a project. If the project will give $400 profit in the first year, $500 in the second year and $300 in the third year. find the pay back period. Now assume that the interest rate is 10%, find the net present value (NPV) and the profitability index (PI) for this project 5) Q: Assume that it costs $1,000 to start a project. If the project will give $400 profit in the first year, $500 in the second year and $300 in the third year. find the pay back period. Now assume that the interest rate is 10%, find the net present value (NPV) and the profitability index (PI) for this project

Answer rating: 100% (QA)

Given Initial investment cost 1000 Cash flows Year 1 400 Year 2 500 Year 3 300 to know in which year ... View the full answer