a firm wants to start a project. A team of financial analysts estimated the following cash flows; Year Cash flow 0 -$100000 1 $55000 2 $43000 3 $45000 1. Suppose the discount rate (interest rate) is...


a firm wants to start a project. A team of financial analysts estimated the following cash flows;

























YearCash flow
0-$100000
1$55000
2$43000
3$45000

1. Suppose the discount rate (interest rate) is 12%, what is the NPV?


2. Suppose that the discount rate (interest rate) is 12%, according to the calculation of NPV we should?


3. the payback period is?


4. Based on the payback period calculations and if the cut off point is 2 years, the project should?


5. Suppose that the discount rate (interest rate) is 12%, the profitability index (PI) is?


6. suppose that the discount rate (interest rate) is 12% based on the PI calculation, the project should?



Jun 04, 2022
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