Calculate the net present value of a project which requires an initial investment of ₱1,000,000 with a 5% discount rate. Net cash flows for six years of the investment are ₱250,000 with each cash flow occurring at the end of the year. questions: What is the IRR of the project? Using the IRR as your basis, should the project be accepted? What is the profitability index of the project?
Calculate the net present value of a project which requires an initial investment of ₱1,000,000 with a 5% discount rate. Net cash flows for six years of the investment are ₱250,000 with each cash flow occurring at the end of the year. questions: What is the IRR of the project? Using the IRR as your basis, should the project be accepted? What is the profitability index of the project?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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What is the IRR of the project?
Using the IRR as your basis, should the project be accepted?
What is the profitability index of the project?
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