esla is planning to produce an all-electric family car and expects the following cash flows (in $ million) at the end of each year: Year Cash flow 0 -50 1 -110 2 20 3 40 4 80 5 80 The company requires a return of 13% from this project. 1. What is the NPV (in $ million)? 2. What is the project's profitability index?

esla is planning to produce an all-electric family car and expects the following cash flows (in $ million) at the end of each year: Year Cash flow 0 -50 1 -110 2 20 3 40 4 80 5 80 The company requires a return of 13% from this project. 1. What is the NPV (in $ million)? 2. What is the project's profitability index?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 1PA: Your company is planning to purchase a new log splitter for is lawn and garden business. The new...

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Year	Cash flow
0	-50
1	-110
2	20
3	40
4	80
5	80

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