Question: Problem 4: You are given a project with the cash flow table. The annual discount rate is 10% Please answer the following questions. Please have

Problem 4: You are given a project with the cash

Problem 4: You are given a project with the cash flow table. The annual discount rate is 10% Please answer the following questions. Please have your calculations organized. If possible, put them in a table. 5 year costs benefits (saving) 0 9000 1 -1000 2 0 4800 3 0 4800 4 0 4800 0 4800 0 2400 4 Year Costs(Investment) benefits (saving) 0 -5,000 0 1 -5,000 0 2 -1,000 3,000 3 -500 5,000 -500 5,000 5 1,000 4,000 a) Calculate Net Present Value (NPV) for both projects (10 points) b) Calculate Return on Investment (ROI) Value for both projects (5 pts) C) In how many years does these projects will pay back? How do you calculate that? (5 pts)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!