You have been asked to evaluate a project that will require an investment of $2.0 million today
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Question:
You have been asked to evaluate a project that will require an investment of $2.0 million today and will produce 25 years of cash flow of $0.25 million.If the required return on this investment is 8%, calculate the following: (i) NPV, (ii) simple payback, (iii) IRR and (iv) profitability index.Should the company pursue the project?Why or why not?(Make sure you answer all aspects of this question)
Related Book For
Essentials of Managerial Finance
ISBN: 978-0324422702
14th edition
Authors: Scott Besley, Eugene F. Brigham
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