Youve got the numbers and the CFO wants you to explain how this investment will be worth
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Question:
Compute the following:
· Using the payback method, how long will it take to recover the initial investment?
· If the hurdle rate is 10%: o What is the future value of the initial investment?
· Assume the future value is the cost of everything you will pay out over the five years, except for the initial investment. What is the present value?
· What is the IRR?
· Should you invest? Why or why not?
Related Book For
Managing Business Ethics Making Ethical Decisions
ISBN: 9781506388595
1st Edition
Authors: Alfred A. Marcus, Timothy J. Hargrave
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