Question: Comparing all methods Risky Business is looking at a project with the estimated cash flow as follows Intal investment at start of project: $11,000,000 Cash
Comparing all methods Risky Business is looking at a project with the estimated cash flow as follows Intal investment at start of project: $11,000,000 Cash flow at end of year one $1,980,000 Cash Sow at end of years two through so $2.200,000 each year Cash fow at end of years seven through nine $2,574,000 each year Cash flow at end of year en: $1.838.571 Risky Business wants to know the payback period. NPV, IRR and P of this project. The appropriate discount rate for the project is 10% the cutoff period is six years for major projects, determine whether the management at Risky Business will accept reject the project under the five different decision models What is the payback period for the new project at Risky Business? years (Round to two decal places) Under the payback period. the project would be (Select from the drop-down menu) What is the NPV for the project at ficky Dunes What is the IF for the new project at fisky Business? (Round to two decals) Under the rule this project would be What is the new project at Round to two decals) Under the Pl rule, this projed would be (elect from the drop-down m elect from the drop-down meno)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
