Consider the Following 10-year project:
Year	Cash Flow
0	-30000
1	2500
2	5000
3	6750
4	7000
5	7250
6	6000
7	6250
8	8000
9	3750
10	2000

What is the Payback Period for the project? Would you accept this project if the cut-off is 5 years?

What is the Discounted Payback Period for the project at 12% required rate of return? Would you accept this project if the cut-off is 9 years?

What is the NPV of the project if the required rate of return is 12%? Would you accept it?

What is the PI of the project? Would you accept it?

Please use Excel and show cell references if possible

Answer rating: 100% (QA)

Here are the calculations for the project in Excel Payback Period ROUND... View the full answer