Question: Given a short project with these estimated outflows and inflows and a discount rate of 5%, use discounted benefits and costs to compute the NPV

 Given a short project with these estimated outflows and inflows and

Given a short project with these estimated outflows and inflows and a discount rate of 5%, use discounted benefits and costs to compute the NPV and ROI. You may want to use scratch paper and calculator. Given a hurdle rate of 30%, would this project appear attractive on the financial criterion? Year Inflows/Benefits Outflows/Costs 10 $10,000 1 $6500 1000 2 6000 1950 13 17500 500 NPV=$755, ROI=6%, project is not attractive NPV=$7550, ROI=61%, project is not attractive NPV=$5865, ROI=48%, project is attractive 5 o o o NPV=$587, ROI=10%, not enough information to determine if attractive or not NPV=$7550, ROI=61%, project is attractive

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