PT C plans to undertake a project requiring an initial investment of $ 60,000 with a...

 

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PT C plans to undertake a project requiring an initial investment of $ 60,000 with a project life of 5 years. The company has a cost of capital of 5%. The project has been estimated to generate cash inflows as follows: Year 2015 2016 2017 2018 2019 Cash Flow In $ 10.000 $ 15.000 $ 22.500 $ 25.500 $ 7.500 Based on the information above, calculate: Calculate the NPV of the project Calculate the Payback Period of the project Calculate the project's IRR Based on the above calculations, should PT C implement the project? PT C plans to undertake a project requiring an initial investment of $ 60,000 with a project life of 5 years. The company has a cost of capital of 5%. The project has been estimated to generate cash inflows as follows: Year 2015 2016 2017 2018 2019 Cash Flow In $ 10.000 $ 15.000 $ 22.500 $ 25.500 $ 7.500 Based on the information above, calculate: Calculate the NPV of the project Calculate the Payback Period of the project Calculate the project's IRR Based on the above calculations, should PT C implement the project?

Answer rating: 100% (QA)

First lets find the net present value NPV of the project Year Cash Flow In Discount Factor 5 Present ... View the full answer