(Payback period, net present value, profitability index, and internal rate of return calculations) You are considering a project with an initial cash outlay of $76,000 and expected cash flows of $22,040 at the end of each year for six years. The discount rate for this project is 9.8 percent. a. What are the project's payback and discounted payback periods? b. What is the project's NPV? c. What is the project's Pl? d. What is the project's IRR? www. a. The payback period of the project is years. (Round to two decimal places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter10: Capital Budgeting: Decision Criteria And Real Option
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(Payback period, net present value, profitability index, and internal rate of return calculations) You are
considering a project with an initial cash outlay of $76,000 and expected cash flows of $22,040 at the end of each
year for six years. The discount rate for this project is 9.8 percent.
a. What are the project's payback and discounted payback periods?
b. What is the project's NPV?
c. What is the project's Pl?
d. What is the project's IRR?
a. The payback period of the project is years. (Round to two decimal places.)
Transcribed Image Text:(Payback period, net present value, profitability index, and internal rate of return calculations) You are considering a project with an initial cash outlay of $76,000 and expected cash flows of $22,040 at the end of each year for six years. The discount rate for this project is 9.8 percent. a. What are the project's payback and discounted payback periods? b. What is the project's NPV? c. What is the project's Pl? d. What is the project's IRR? a. The payback period of the project is years. (Round to two decimal places.)
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