A project that requires an initial investment of $340,000 is expected to have an after-tax cash flow of $70,000 per year for the first two years, $90,000 per year for the next two years, and $150,000 for the fifth year? Assume the required return for this project is 10%. What is the NPV of the project? What is the IRR of the project? What is the PI of the Project? What is the equivalent annual annuity using a 10% required rate of return?

What is the NPV of the project?

Answer 1Choose...980.10 $3 715.34 $10.24%10.45%1.12986.50 $3 230.30 $1.01110.38%

What is the IRR of the project?

Answer 2Choose...980.10 $3 715.34 $10.24%10.45%1.12986.50 $3 230.30 $1.01110.38%

What is the PI of the Project?

Answer 3Choose...980.10 $3 715.34 $10.24%10.45%1.12986.50 $3 230.30 $1.01110.38%

What is the equivalent annual annuity using a 10% required rate of return?

Answer rating: 100% (QA)

1 2 IRR and NPV are 104 and 3377 respectively as show... View the full answer