Question: Comparing all methods. Risky Business is looking at a project with the following estimated cash flow: Initial investment at start of project: $11 comma 600
Comparing all methods. Risky Business is looking at a project with the following estimated cash flow: Initial investment at start of project: $11 comma 600 comma 000 Cash flow at end of year one: $2 comma 088 comma 000 Cash flow at end of years two through six: $2 comma 320 comma 000 each year Cash flow at end of years seven through nine: $2 comma 505 comma 600 each year Cash flow at end of year ten: $1 comma 789 comma 714 Risky Business wants to know the payback period, NPV, IRR, MIRR, and PI of this project. The appropriate discount rate for the project is 12%. If the cutoff period is 6 years for major projects, determine whether the management at Risky Business will accept or reject the project under the five different decision models. What is the payback period for the new project at Risky Business? nothing years(Round to two decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
