Q). Churchill Inc. is considering an investment that has the following cash flows: ($1,000,000) 500,000 300,000...

 

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Q). Churchill Inc. is considering an investment that has the following cash flows: ($1,000,000) 500,000 300,000 200,000 200,000 100,000 Now Year 1 Year 2 Year 3 Year 4 Year 5 Required investment cash inflow cash inflow cash inflow cash inflow cash inflow a) Calculate the following: i. ii. iii. The payback period The return on the initial investment The return on the average investment The present value using an interest rate of 10% iv. b) Is the investment worthwhile? Q). Churchill Inc. is considering an investment that has the following cash flows: ($1,000,000) 500,000 300,000 200,000 200,000 100,000 Now Year 1 Year 2 Year 3 Year 4 Year 5 Required investment cash inflow cash inflow cash inflow cash inflow cash inflow a) Calculate the following: i. ii. iii. The payback period The return on the initial investment The return on the average investment The present value using an interest rate of 10% iv. b) Is the investment worthwhile?

Answer rating: 100% (QA)

a i Payback period is the time taken to recover the initial inves... View the full answer