Consider the following information about a project: PROJECT YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 $160,000 $43,000 $400,000 $50,000 $400, 000 $500,000 $500,000 COSTS $50,000 $64,000 BENEFITS $0 a) Calculate the NPV assuming 10% discount rate b) Determine in which year will be the payback c) Calculate (ROI)? Provide the detail answer for your calculation.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Consider the following information about a project:
PROJECT
YEAR 0
YEAR 1
YEAR 2
YEAR 3 YEAR 4
$160,000
$43,000
$400,000
$50,000
$400, 000 $500,000 $500,000
COSTS
$50,000
$64,000
BENEFITS
$0
a) Calculate the NPV assuming 10% discount rate
b) Determine in which year will be the payback
c) Calculate (ROI)?
Provide the detail answer for your calculation.
Transcribed Image Text:Consider the following information about a project: PROJECT YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 $160,000 $43,000 $400,000 $50,000 $400, 000 $500,000 $500,000 COSTS $50,000 $64,000 BENEFITS $0 a) Calculate the NPV assuming 10% discount rate b) Determine in which year will be the payback c) Calculate (ROI)? Provide the detail answer for your calculation.
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