1. Use the information below to answer the following questions: Your company is considering an investment project. The required rate of return for the project is 10%, and the project will produce the following cash flows: Year 0 1 2 3 Cash flow -55,000 15000 25,000 40,000 1. Calculate the net present value, will you accept the project? and why? 2. Calculate the payback period for this project? 3. Calculate the profitability Index for this project?

1. Use the information below to answer the following questions: Your company is considering an investment project. The required rate of return for the project is 10%, and the project will produce the following cash flows: Year 0 1 2 3 Cash flow -55,000 15000 25,000 40,000 1. Calculate the net present value, will you accept the project? and why? 2. Calculate the payback period for this project? 3. Calculate the profitability Index for this project?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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