Question: Comparing all methods. Risky Business is looking at a projoct with the estimated cash flow as follows Inlial investment at stait of profect $13,300,000 Cash

Comparing all methods. Risky Business is looking at a projoct with the estimated cash flow as follows Inlial investment at stait of profect $13,300,000 Cash flow at end of yoar one $2,394,000 Cash flow at end of years two through sbx $2,660,000 each year Cash flow at end of years seren through nlne $2,633,400 each year Cash flow at end of yoar fon. $2,025,692 Risky Business wants to know the payback period, NPV, IRR, and PI of this profoct. The oppropriato discount rate for the project is 13%. 8 the cutoll period is six yean for major projects, determine whether the maniagement 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? years (Round to two decimal places.) Under the payback period, this project would be (Select from the drop-down menu.) What is the NPV for the project at Risky Business? (Round to the nearest cent) Under the NPV rule, this project would be (Select from the drop-down menu.) What is the IRR for the new project at Risky Business? % (Round to two decimal places.) Under the IRR rule, this project would be (Select from the drop-down menu.) What is the PI for the new project at Risky Business? (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
