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?(Payback ?period, NPV,? PI, and IRR calculations?) You are considering a project with an initial cash...

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Finance

?(Payback ?period, NPV,? PI, and IRR calculations?) You areconsidering a project with an initial cash outlay of ?$90,000 andexpected free cash flows of ?$22,000 at the end of each year for 7years. The required rate of return for this project is 9percent.

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
4.0 Ratings (802 Votes)
aProjects payback period Projects payback period Initial Investment cost Annual cash inflow 90000 22000 per year 409 Years bProjects Net Present Value NPV Year Annual Cash Flow Present Value factor at 9 Present Value of Cash Flow 1    See Answer
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Transcribed Image Text

?(Payback ?period, NPV,? PI, and IRR calculations?) You areconsidering a project with an initial cash outlay of ?$90,000 andexpected free cash flows of ?$22,000 at the end of each year for 7years. The required rate of return for this project is 9percent.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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