Sun Peaks Ski Resort is considering an investment of $ 250,000 in a capital project....
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Accounting
Sun Peaks Ski Resort is considering an investment of $ 250,000 in a capital project. The project will generate the following net cash inflows over the next 4 years.
Year
1 year 100,000
2 year 90,000
3 year 60,000
4 year 50,000
The companys cost of capital is 10%, compounded annually. Calculate the following: a) The payback period
b) The discounted payback period
c) The net present value
d) Would you recommend they go ahead with the project? Why?
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