Satyam project requires an investment of $25,000 and has an expected life of 4 years. Ignore...

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Satyam project requires an investment of $25,000 and has an expected life of 4 years. Ignore tax. Annual cash flows at the end of each year are as follows: Amount in $ 9,000 5,000 Year 1 3 8,000 9,000 4 Discount Rate 12% REQUIRED 1. Compute the payback period assuming that the cash flows occur evenly throughout the year 2. Find the discounted Payback Period 3. What is the Net Present Value and the Profitability index. 4. Find the IRR of this project. Is it profitable? 5. Determine the accounting rate of return for the project based on the initial investment Posted Mar1 Assignment 1 Part 1 Satyam project requires an investment of $25,000 and has an expected life of 4 years. Ignore tax. Annual cash flows at the end of each year are as follows: Amount in $ 9,000 5,000 Year 1 3 8,000 9,000 4 Discount Rate 12% REQUIRED 1. Compute the payback period assuming that the cash flows occur evenly throughout the year 2. Find the discounted Payback Period 3. What is the Net Present Value and the Profitability index. 4. Find the IRR of this project. Is it profitable? 5. Determine the accounting rate of return for the project based on the initial investment Posted Mar1 Assignment 1 Part 1

Answer rating: 100% (QA)

Given information Initial Investment 25000 Annual Cash Inflows Year 1 9000 Year 2 5000 Year 3 8000 Year 4 9000 Project life 4 years Discount rate 12 S... View the full answer