Question: Problems 1-5 are all dealing with the same question. RSM 290 Fall 2018 Homework 5-Capital Budgeting (50 points) There are a total of six problems.
RSM 290 Fall 2018 Homework 5-Capital Budgeting (50 points) There are a total of six problems. Problems 1-5 are similar to textbook Practice Problems 1-4 and 6 on page 210. Problem 6 is similar to textbook Practice Problem 7. Excel is recommended, primarily for problems 1-4, but it is not required. Provide your final answers in the spaces provided below Project M has a cost of $75,125, expected net cash inflows of $12,500 per year for 10 years, and a cost of capital of 8%. 1. (5 points) What is the project's payback period (to the dosest year)? 2. (5 points) What is the project's NPV? 3. (5 points) What is the project's IRR? 4. (5 points) What is the project's discounted payback period 5. (4 points) Based on the answers to Problems 1-4, should the project be accepted? Why or why not
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