Question: ZZZ inc. would like to implement a new project. It is estimated that the project's costs at t=0 will be $200,000 and during the next

ZZZ inc. would like to implement a new project. It is estimated that the project's costs at t=0 will be $200,000 and during the next 7 years the project will generate the following cash flow: C=$50,000; Cz=$110,000; C3=$40,000; C4=$35,000; Cs=$30,000; C6=$25,000; C =$90,000. The cost of capital (discount rate) is 12% 2 Problem 9: Find the project's payback period Problem 10: Find the project's discounted payback period Problem 11: Find the project's NPV Problem 12: Find the project's profitability index Problem 13: Which of the following is the closest approximation to the project's IRR (since you may have to do many computations for this question, it may be useful to use Excel to save time) A) 11% B) 21% C) 26% D) 31% E) 41%
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