Given the following attributes of an investment project with a five-year life: investment outlay, year 0,...

 

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Given the following attributes of an investment project with a five-year life: investment outlay, year 0, $7,640; after-tax cash inflows, year 1, $920; year 2, $1,020; year 3, $2,700; year 4, $3,000; and year 5, $4,400. (a) Use the built-in NPV function of Excel to estimate the NPV of this project. Assume an after-tax discount rate of 12.0% (b) Estimate the payback period, in years, for this project under the assumption that cash inflows occur evenly throughout the year. (Round "Payback period" to the nearest whole number. Negative amounts should be entered with a minus sign. Round your answers to the nearest whole dollar amount.) Payback period Years Year After-tax Cash Flows Cumulative Cash Flows 0 1 2 3 4 5 NPV = Given the following attributes of an investment project with a five-year life: investment outlay, year 0, $7,640; after-tax cash inflows, year 1, $920; year 2, $1,020; year 3, $2,700; year 4, $3,000; and year 5, $4,400. (a) Use the built-in NPV function of Excel to estimate the NPV of this project. Assume an after-tax discount rate of 12.0% (b) Estimate the payback period, in years, for this project under the assumption that cash inflows occur evenly throughout the year. (Round "Payback period" to the nearest whole number. Negative amounts should be entered with a minus sign. Round your answers to the nearest whole dollar amount.) Payback period Years Year After-tax Cash Flows Cumulative Cash Flows 0 1 2 3 4 5 NPV =

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a NPV of the investment project NPV7600 920 1020 2700 3... View the full answer