Question: Dramson Inc. is considering a new project with an initial cost of $305,000. This project will generate cash flows of $115,000 per year for the
Dramson Inc. is considering a new project with an initial cost of $305,000. This project will generate cash flows of $115,000 per year for the next 5 years. Assume the appropriate discount rate is 14 percent. What is the project's NPV? $93,281.34$84,237.12$89,804.31$88,759.23 What is the project's payback period? 2.65 years 0.97 years 0.49 years 1.44 years What is the project's IRR? 23.02% 25.68% 23.69% 24.35%
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