The management of Digital Waves, Inc. is considering a project with a net cost of $115,000 and
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Question:
The management of Digital Waves, Inc. is considering a project with a net cost of $115,000 and an annual net cash inflow estimated at $30,000 over the project's life of 5 years. The company has a cost of capital of 6 percent. The project under consideration has risk that is typical for the company.
a. What is the project's payback period?
b. What is the project's NPV?
c. What is the project's IRR?
d. What is the project’s PI?
Related Book For
Intermediate Financial Management
ISBN: 978-1285850030
12th edition
Authors: Eugene F. Brigham, Phillip R. Daves
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