Question: Question 10 (1 point) Van Auken Inc. is considering a project that has the following cash flows: Year Cash Flow 0 $1,000 1 400 2
Question 10 (1 point)

Van Auken Inc. is considering a project that has the following cash flows:
| Year | Cash Flow | ||||||||
| 0 | $1,000 | ||||||||
| 1 | 400 | ||||||||
| 2 | 300 | ||||||||
| 3 | 500 | ||||||||
| 4 | 400 | ||||||||
The companys WACC is 10%. What are the projects payback, IRR, and NPV?Question 10 options:
| payback = 2.4, IRR = 10.00%, NPV = $600 | |
| payback = 2.4, IRR = 21.22%, NPV = $260 | |
| payback = 2.6, IRR = 21.22%, NPV = $260 | |
| payback = 2.6, IRR = 21.22%, NPV = $300 |
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
