Question: A. Project L requires an initial outlay at t = 0 of $50,000, its expected cash inflows are $14,000 per year for 9 years, and

A. Project L requires an initial outlay at t = 0 of $50,000, its expected cash inflows are $14,000 per year for 9 years, and its WACC is 10%. What is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent.

B.Project L requires an initial outlay at t = 0 of $68,745, its expected cash inflows are $12,000 per year for 10 years, and its WACC is 12%. What is the project's IRR? Round your answer to two decimal places.

C. Project L requires an initial outlay at t = 0 of $61,000, its expected cash inflows are $11,000 per year for 12 years, and its WACC is 13%. What is the project's payback? Round your answer to two decimal places.

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!