Comparing all methods. Risky Business is looking at a project with the following estimated cash​ flow: Initial investment at start of​ project: ​$13,500,000 Cash flow at end of year​ one: ​$2,295,000...




Comparing all
methods.

Risky Business is looking at a project with the following estimated cash​ flow:











Initial investment at start of​ project:
​$13,500,000


Cash flow at end of year​ one:
​$2,295,000


Cash flow at end of years two through​ six:
​$2,700,000

each year

Cash flow at end of years seven through​ nine:
​$2,754,000

each year

Cash flow at end of year​ ten:
​$1,967,143







Risky Business wants to know the payback​ period, NPV,​ IRR, MIRR, and PI of this project. The appropriate discount rate for the project is
12​%.

If the cutoff period is six years for major​ projects, determine whether the management at Risky Business will accept or reject the project under the five different decision models.




What is the payback period for the new project at Risky​ Business?




years  ​(Round to two decimal​ places.)



Jun 08, 2022
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