Consider a project that will cost $80,000 this year and is forecasted to earn $135,000 in lump-sum

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Consider a project that will cost $80,000 this year and is forecasted to earn $135,000 in lump-sum profit after 4 years. Assume a cost of capital (discount rate) of 10%

A- What's this project's NPV? Round to a whole dollar.

B-What's this project's PI? Round to two decimal places.

C-What's this project's IRR? Answer in percent, rounded to one decimal place.

D-What's this project's NPV? Round to a whole dollar.

E- What's this project's PI? Round to two decimal places.

F- What's this project's IRR? Answer in percent, rounded to one decimal place.

Related Book For answer-question

Cornerstones of Cost Management

ISBN: 978-1285751788

3rd edition

Authors: Don R. Hansen, Maryanne M. Mowen

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Posted Date: Mar 15, 2024 02:30 PM

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Consider a project that will cost $80,000 this year and is forecasted to earn $135,000 in lump-sum

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To calculate the NPV Net Present Value PI Profitability Index and IRR Internal Rate of Return for th... View the full answer

Cornerstones of Cost Management

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