You have the following projects available: Time Period 0 1 2 3 4 10 5 Discount...

Transcribed Image Text:

You have the following projects available: Time Period 0 1 2 3 4 10 5 Discount Rate Payback Period PI NPV IRR₁ IRR₂ (if it exists) Project A -$40,000.00 $35,000.00 $15,000.00 $9,000.00 $2,000.00 $3,000.00 10% Project A Project Cash Flows Project B -$40,000.00 $1,000.00 $4,000.00 $16,000.00 $29,000.00 $32,000.00 10% Project B $15,912.79 Project C -$25,000.00 $78,000.00 -$55,000.00 15% Project C Project D -$9,000.00 $6,000.00 $1,000.00 6% Project D Note: For simplicity, we measure payback period in full years (unlike the textbook). Calculate the numbers for the empty cells for Projects A to D. Hint: For some projects, a second (positive) IRR may exist. For Project D, the payback period may be easier to express in words. You have the following projects available: Time Period 0 1 2 3 4 10 5 Discount Rate Payback Period PI NPV IRR₁ IRR₂ (if it exists) Project A -$40,000.00 $35,000.00 $15,000.00 $9,000.00 $2,000.00 $3,000.00 10% Project A Project Cash Flows Project B -$40,000.00 $1,000.00 $4,000.00 $16,000.00 $29,000.00 $32,000.00 10% Project B $15,912.79 Project C -$25,000.00 $78,000.00 -$55,000.00 15% Project C Project D -$9,000.00 $6,000.00 $1,000.00 6% Project D Note: For simplicity, we measure payback period in full years (unlike the textbook). Calculate the numbers for the empty cells for Projects A to D. Hint: For some projects, a second (positive) IRR may exist. For Project D, the payback period may be easier to express in words.

Answer rating: 100% (QA)

Payback period is the period when the initial investment is recovered In the given question I have t... View the full answer