a) A firm is evaluating a proposal which has an initial investment of $35,000 and has cash flows of $10,000 in year 1, $20,000 in year 2, and $10,000 in year . Calculate the payback period of the project.
a) A firm is evaluating a proposal which has an initial investment of $35,000 and has cash flows of $10,000 in year 1, $20,000 in year 2, and $10,000 in year . Calculate the payback period of the project.
b)Calculate the
c)Tangshan Mining Company is considering investing in a new mining project. The firm's cost of capital is 12 % and the project is expected to have an initial after-tax cost of $5,000,000. Furthermore, the project is expected to provide after-tax operating cash flows of $2,500,000 in year 1, $2,300,000 in year 2, $2,200,000 in year 3, and ($1,300,000) in year 4
- Calculate the project's Net Present Value.
- Calculate the project's
Internal Rate of Return .
- Should the firm make the investment?
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