Question: The Semo Restaurant is considering a project with an initial cost of $25,000. The project will not produce any cash flows for the first two
The Semo Restaurant is considering a project with an initial cost of $25,000. The project will not produce any cash flows for the first two years. Starting in year three, the project will produce cash inflows if $21,000 a year for two years. This project is risky, so the firm has a assigned it a discount rate of 15 percent. what is the projects net present value, payback time, IRR and PI?
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