Question: Payback 3: You are considering a project with an initial cash outlay of $80,000 and expected free cash flows of $20,000 at the end of

  1. Payback 3: You are considering a project with an initial cash outlay of $80,000 and expected free cash flows of $20,000 at the end of each year for six years. The expected rate of return for this project is 10%. You have an expected Payback Period of 4 years.
    1. What is the projects payback (Undiscounted FCF) and discounted payback periods Discounted FCF)? This is the schedule of outlays and free cash flows over the life of the project. Hint: Complete the table.
    2. What is the projects NPV?
    3. What is the projects Discounted Payback Period om years?
    4. What is the project's IRR (Internal Rate of Return)?
    5. Do you accept the project? Explain your reasoning. Payback 3: You are considering a project with an initial cashPlease fill in the blanks, thank you!

Payback Period #3 Payback Period Required Rate of Return Project 9-5A Undiscounted FCF Cumulative Discounted FCF Do you accept the project? Year PVIF Discounted FCF 0 Enter "YES" or "NO" here 1 2 Explain your reasoning here. 3 4 5 6 NPV 1 PV Factor = (1+r)" r=rate of return n = number of periods Fraction IRR Discounted Payback Period

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