The Merriweather Printing Company is trying to decide on the merits of constructing a new publishing facility.

Question:

The Merriweather Printing Company is trying to decide on the merits of constructing a new publishing facility. The project is expected to provide a series of positive cash flows for each of the next four years. The estimated cash flows associated with this project are as follows:
Year ________________ Project Cash Flow
0 .......................... ?
1 .......................... $800,000
2 .......................... 400,000
3 .......................... 300,000
4 .......................... 500,000
If you know that the project has a regular of 2.5 years, what is the project's IRR?
Payback Period
Payback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...