NPV,? PI, and IRR calculations?) You are considering a project with an initial cash outlay of...

90.2K

Verified Solution

Question

Finance

NPV,? PI, and IRR calculations?) You are considering a projectwith an initial cash outlay of ?$70,000 and expected free cashflows of ?$28,000 at the end of each year for 6 years. The requiredrate of return for this project is 7 percent.
a. What is the? project's payback? period?
b. What is the? project's NPV??
c. What is the? project's PI??
d. What is the? project's IRR??

Answer & Explanation Solved by verified expert

3.6 Ratings (531 Votes)

Initial Outlay 70000 Annual FCF 28000 Period 6 years Required Return 7 Answer a Payback Period Initial Outlay Annual FCF Payback Period 70000 28000 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

Transcribed Image Text

NPV,? PI, and IRR calculations?) You are considering a projectwith an initial cash outlay of ?$70,000 and expected free cashflows of ?$28,000 at the end of each year for 6 years. The requiredrate of return for this project is 7 percent.a. What is the? project's payback? period?b. What is the? project's NPV??c. What is the? project's PI??d. What is the? project's IRR??