Question: Consider a project with a required return of R % that costs $ I and will last for N years. The project uses straight-line depreciation

  1. Consider a project with a required return of R% that costs $I and will last for N years. The project uses straight-line depreciation to zero over the N-year life; there is no salvage value or net working capital requirements.
  2. At the accounting break-even level of output, what is the IRR of this project?
  3. The payback period? The NPV?
  4. At the cash break-even level of output, what is the IRR of this project? The pay- back period? The NPV?
  5. At the financial break-even level of output, what is the IRR of this project? The payback period? The NPV?

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