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NPV,? PI, and IRR calculations?) You are considering a project with an initial cash outlay of...

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Finance

NPV,? PI, and IRR calculations?) You are considering a projectwith an initial cash outlay of ?$70,000 and expected free cashflows of ?$28,000 at the end of each year for 6 years. The requiredrate of return for this project is 7 percent.

a. What is the? project's payback? period?

b. What is the? project's NPV??

c. What is the? project's PI??

d. What is the? project's IRR??

Answer & Explanation Solved by verified expert
3.6 Ratings (531 Votes)
Initial Outlay 70000 Annual FCF 28000 Period 6 years Required Return 7 Answer a Payback Period Initial Outlay Annual FCF Payback Period 70000 28000    See Answer
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Transcribed Image Text

NPV,? PI, and IRR calculations?) You are considering a projectwith an initial cash outlay of ?$70,000 and expected free cashflows of ?$28,000 at the end of each year for 6 years. The requiredrate of return for this project is 7 percent.a. What is the? project's payback? period?b. What is the? project's NPV??c. What is the? project's PI??d. What is the? project's IRR??

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