1. Consider the Following 10-year project: Year Cash Flow 0 -30000 1 2500 2 5000 3 6750 4 7000 5 7250 6 6000 7 6250 8 8000 9 3750 10 2000 Complete the following questions on excel: What is the Payback Period...

80.2K

Verified Solution

Question

Finance

1.
Consider the Following 10-year project:
Year
Cash Flow
0
-30000
1
2500
2
5000
3
6750
4
7000
5
7250
6
6000
7
6250
8
8000
9
3750
10
2000
Complete the following questions on excel:
What is the Payback Period for the project?
What is the Discounted Payback Period for the project at 12%required rate of return?
What is the NPV of the project if the required rate of returnis 12%
What is the PI of the project?
What is the IRR of the project?

Answer & Explanation Solved by verified expert

3.9 Ratings (729 Votes)

ProjectYearCash flow streamCumulativecash flow03000030000125002750025000022500367502925047000362505725043500660004950076250557508800063750937506750010200069500Paybackperiod is the time by which undiscounted cashflow cover the See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member