Question: Projected cash flows for the project are shown below. The firm's WACC is 9.1%. Given the additional risk of this project, add 0.8% to the
Projected cash flows for the project are shown below. The firm's WACC is 9.1%. Given the additional risk of this project, add 0.8% to the discount rate for this project. Identify the project's Net Present Value, Internal Rate of Return, and Discounted Payback Period (with fractional years calculated).
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash Flow | -27,500 | -3,000 | $8,000 | $11,700 | $14,500 | $10,000 |
| Cumulative | -27,500 | $ (30,500) | $ (22,500) | $ (10,800) | $ 3,700 | $ 13,700 |
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