Management of Pharoah, Inc., is considering switching to a new production technology. The cost of the required equipment will be $4,000,000. The discount rate is 9 percent. The cash flows that management expects the new technology to generate are as follows. a. Compute the payback and discounted payback periods for the project. (Round answers to 2 decimal places, e.g. 15.25.) The payback for the project is years, and the discounted payback period is year b. What is the NPV for the project? Should the firm go ahead with the project? (Enter negative amounts using negative sign e.g. -45.25. Do not round discount factors. Round intermediate calculations to 0 decimal places, e.g. 1,525 and final answer to 0 decimal places, e.g. 5,125.) The NPV of the project is $ , and using the NPV rule the project should be c. What is the IRR, and what would be the decision based on the IRR? (Round answer to 3 decimal places, e.g. 15.256\%.) The IRR of the project is %, and using the IRR rule the project should be
Other questions asked by students
Iconic memory is a type of memory that holds visual information for about half a second...
If you were starting a new job, would you want to be paid at the top...
Which of the following merodiploids would be constitutive for lacZ expression in the absence of...
When light strikes the surface of a lake it slows down some of its energy...
18 Negation Choose one Use one of DeMorgan s Laws to choose a negation of...
Convert the Hindu Arabic numeral to Roman form 15 619 Choose the correct answer below...
18 The monthly membership fee for an online television and movie service is 9 80...
Identify critical elements in accounting for gift card sales.at least 300 words)