Question: A five year project has a projected net cash flow of $ 1 5 , 0 0 0 , $ 2 5 , 0 0

A five year project has a projected net cash flow of $15,000, $25,000, $30,000, $20,000, and $15,000 in the next five years. It will cost $50,000 to implement the project. If the discount rate is 0.20, what is ROI and payback? The NPV is 12895. what is the roi? I know the correct answer is 26% but do not know how thet got to that

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!

Q:

Three new projects are proposed for a new start-up company. Project 1 will cost $300,000 to develop and will have an annual cash flow of $35,000. Project 2 will cost $200,000 and is projected to have...

Q:

2. A five - year project has a projected net cash flow of $10,000, $15,000, $20,000, $20,000, and $25,000 in the next five years. It will cost $75,000 to implement the project. If the required rate...

Q:

a five year project has a projected net cash flow of $30,000 in year 1, $12,000 in year 2, $12,000 in year 3, $24,000 in year 4, and $18,000 in year 5. it will cost $700,000 to implement the project....

Q:

EX2-3 (Algo) A five-year project has... A five year project has a projected net cash flow of $21000 in year 1, $26.000 in year 2. $24.000 in year 3. $16.000 in year 4 and $10,000 in year 5. It will...

Q:

er 2 Homework EX 2 - 3 ( Algo ) A five - year project has... A five year project has a projected net cash flow of $ 2 2 , 0 0 0 in year 1 , $ 3 0 , 0 0 0 in year 2 , $ 2 8 , 0 0 0 in year 3 , $ 1 1 ,...

Q:

A five - year project has a projected net cash flow of $15,000, $25,000, $30,000, $35,000, and $20,000 in the next five years. It will cost $80,000 to implement the project. If the required rate of...

Q:

A five - year project has a projected net cash flow of $30,000, $25,000, $20,000, $15,000, and $20,000 in the next five years. It will cost $50,000 to implement the project. If the required rate of...

Q:

A five year project has a projected net cash flow of 15000, 25000,30000,20000, and 15000 in the next five years. It will cost 50000 to implement the project. If the required rate of return is 20...

Q:

A five- year project has a projected net cash flow of 15,000, 25,000, 20,000, 20,000 and 15,000 in the next five years. It will cost 50,000 to implement the project. If the required rate of return is...

Q:

A five year project has a projected net cash flow of $15,000, $25,000, $30,000, $20,000, and $15,000 in the next five years. It will cost $50,000 to implement the project and an operational cost of...

Q:

What goals would you strive to achieve on this job? Why? What role would your manager play in determining your goals?

Q:

Review each authors discussion about Kotters eight-step model of change, Lewins three-step model, and the five phases involved in action research. All of the authors discuss at least one of these...

Q:

A bond issued on February 1 , 2 0 0 4 with face value of $ 3 8 0 0 has semiannual coupons of 4 . 5 % , and can be redeemed for par ( face value ) on February 1 , 2 0 2 2 . What is the accrued...

Q:

Which of the following are problems with identifying users of ABC? Multiple select question. ABC means different things to different organizations. Organizations will announce the discontinuance of...

Q:

(Appendices) How is this affected by business policies concerning prices and credit sales? LO2

Q:

(Appendices) Compare the Original Medicare Plan with Medicare Advantage Plans with respect to each of the following: LO5 a. Choice of plan coverage b. Benefits provided by the plan c. Need for a...

Q:

(Appendices) Forrest, age 23, was honorably discharged from the U.S. Marine Corps after four years, which included two tours of duty in Iraq. He was severely wounded when his platoon engaged in a...