2.You are evaluating an investment project with the following cash flows :PeriodCash Flows- $200 0001$40 0002$60 0003$75 0004$ 80 000Assuming the cost of capital 10%, calculate the following (in excel):Payback periodDiscounted Payback Periodа.b.C.NPVd.PIе.IRR

The following calculations are done to evaluate the profitability of the project.

2. You are evaluating an investment project with the following cash flows : Period Cash Flows - $200 000 1 $40 000 $60 000 3 $75 000 4 $ 80 000 Assuming the cost of capital 10%, calculate the following (in excel): Payback period Discounted Payback Period NPV a. b. C. d. PI е. IRR

2. You are evaluating an investment project with the following cash flows : Period Cash Flows - $200 000 1 $40 000 $60 000 3 $75 000 4 $ 80 000 Assuming the cost of capital 10%, calculate the following (in excel): Payback period Discounted Payback Period NPV a. b. C. d. PI е. IRR

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

2.
You are evaluating an investment project with the following cash flows :
Period
Cash Flows
- $200 000
1
$40 000
2
$60 000
3
$75 000
4
$ 80 000
Assuming the cost of capital 10%, calculate the following (in excel):
Payback period
Discounted Payback Period
а.
b.
C.
NPV
d.
PI
е.
IRR

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