You are given the following cash flows for the project: Time 0 Time 1 Time 2 Time 3 Time 4 -115,000 30,000 50,000 50,000 20,000 If the If the required rate...

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Finance

You are given the following cash flows for the project:
Time 0
Time1
Time2
Time3
Time4
-115,000
30,000
50,000
50,000
20,000
If the If therequired rate of return is 13%, (1) what is the payback period, (2)what is the NPV, (3) what is the IRR, and (4) what is theProfitability Index (PI). Should we accept the project?

Answer & Explanation Solved by verified expert

4.0 Ratings (486 Votes)

Comments Payback period 270 Years Payback period is within 4 years lifeSoon payback period it is acceptable NPV 2375 NegativeSo on this basis project is not acceptable IRR 1198 IRR is less than See Answer

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Transcribed Image Text

You are given the following cash flows for the project:Time 0Time1Time2Time3Time4-115,00030,00050,00050,00020,000If the If therequired rate of return is 13%, (1) what is the payback period, (2)what is the NPV, (3) what is the IRR, and (4) what is theProfitability Index (PI). Should we accept the project?

You are given the following cash flows for the project: Time 0 Time 1 Time 2 Time 3 Time 4 -115,000 30,000 50,000 50,000 20,000 If the If the required rate...

50.1K

Verified Solution

Question

Finance

Answer & Explanation Solved by verified expert

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Time 0	Time1	Time2	Time3	Time4
-115,000	30,000	50,000	50,000	20,000