A four-year financial project has net cash flows of $20,000; $25,000; $30,000 and $50,000 in the next four (4) years. It will cost $75,000 to implement the project, and the required rate of return is 0.2.

Ignoring the time value of money, determine the payback period and the average rate of return for this project.

Conduct a discounted cash flow calculation to determine the NPV & recommend whether this is a feasible project or otherwise.

What would happen if the inflation rate was expected to be at 4% yearly for the next four years?

Answer rating: 100% (QA)

Answer A The present value of the cash flows for this project are as ... View the full answer