Question: Calculate the net cash flow for each year. Based on these cash flows, what are the project's NPV, IRR, MIRR, PI, payback, and discount payback?
Calculate the net cash flow for each year. Based on these cash flows, what are the project's NPV, IRR, MIRR, PI, payback, and discount payback? Do these indicators suggest that the project should be undertaken?
The net cash flows are as follows:
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |
|---|---|---|---|---|---|
| Initial Outlay | ($240,000) | ||||
| Operating Cash Flow | $106,680 | $120,450 | $93,967 | $88,680 | |
| CF due to NOWC | ($30,000) | ($900) | ($927) | ($956) | $32,783 |
| Salvage Cash Flows | $15,000 | ||||
| Net Cash Flows | ($270,000) | $105,780 | $119,523 | $93,011 | $136,463 |
NPV =
IRR=
MIRR=
PI=
PAYBACK=
DISCOUNTED PAYBACK=
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
