Question: just Q3 plz, dont use Excel, use Present value formula plz op JCCLS. 3. Consider a project which has an initial cash outlay of $150,000
just Q3 plz, dont use Excel, use Present value formula plzop JCCLS. 3. Consider a project which has an initial cash outlay of $150,000 and cash inflows of $42,000 at the end of each year for seven years. The cost of capital is 10%. + a) Find the net present value of this project. b) Would you accept this project using the net present value guideline? Explain your answer. 2 c) Find the profitability index for the project. 2 d) Find the undiscounted payback period for the Sroject. 1 4. A project has an initial outflow of $16,400 followed by inflows of $4000 at the end of the first year, $7000 at the end of the second year, $10400 at the end of the third year and $11000 at the end of the fourth year. Set up the mathematical equation for finding the internal rate of return for the project. (Hint: You can use the symbol for an exponent in writing down your equation and the symbol IRR for the internal rate of return.) 15. What statistic is used to measure the risk or volatility of an investment? 26. Define what is meant by: a) Positively correlated assets b) Negatively correlated assets
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
