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1. Consider the Following 10-year project: Year Cash Flow 0 -30000 1 2500 2 5000 3 6750 4 7000 5 7250 6 6000 7 6250 8 8000 9 3750 10 2000 Complete the following questions on excel: What is the Payback Period...

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Question

Finance

1.

Consider the Following 10-year project:

Year

Cash Flow

0

-30000

1

2500

2

5000

3

6750

4

7000

5

7250

6

6000

7

6250

8

8000

9

3750

10

2000

Complete the following questions on excel:

  1. What is the Payback Period for the project?
  2. What is the Discounted Payback Period for the project at 12%required rate of return?
  3. What is the NPV of the project if the required rate of returnis 12%
  4. What is the PI of the project?
  5. What is the IRR of the project?

Answer & Explanation Solved by verified expert
3.9 Ratings (729 Votes)
ProjectYearCash flow streamCumulativecash flow03000030000125002750025000022500367502925047000362505725043500660004950076250557508800063750937506750010200069500Paybackperiod is the time by which undiscounted cashflow cover the    See Answer
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1.Consider the Following 10-year project:YearCash Flow0-30000125002500036750470005725066000762508800093750102000Complete the following questions on excel:What is the Payback Period for the project?What is the Discounted Payback Period for the project at 12%required rate of return?What is the NPV of the project if the required rate of returnis 12%What is the PI of the project?What is the IRR of the project?

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