A business owner wants to invest $100,000 into a project that will generate a net present value
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A business owner wants to invest $100,000 into a project that will generate a net present value of $150,000. The project has an expected life of five years and requires an initial investment of $80,000. If the business owner's cost of capital is 10%, what is the internal rate of return (IRR) of the project? Also, calculate the profitability index (PI) of the project.
Related Book For
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
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