A firm is considering a new inventory system that will cost $120,000. The system is expected to generate positive cash flows over the next four years in the amounts of $35,000 in year 1, $55,000 in year 2, $65,000 in year 3, and $40,000 in year 4. The firm’s required rate of return is 9%. What is the payback period of this project? 1.95 years 2.46 years 2.99 years 3.10 years Based on the information from Question 47. What is the net present value (NPV) of the project? $28,830.29 $30,929.26 $36,931.43 $39,905.28 Based on the information from Question 47, what is the internal rate of return (IRR) of this project? 14.03% 17.56% 19.26% 21.78% Based on the information from Question 47, what is the profitability index (PI) of this project? 0.87 1.11 1.31 1.83.
A firm is considering a new inventory system that will cost $120,000. The system is expected to generate positive cash flows over the next four years in the amounts of $35,000 in year 1, $55,000 in year 2, $65,000 in year 3, and $40,000 in year 4. The firm’s required
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1.95 years |
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2.46 years |
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2.99 years |
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3.10 years |
Based on the information from Question 47. What is the
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$28,830.29 |
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$30,929.26 |
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$36,931.43 |
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$39,905.28 |
Based on the information from Question 47, what is the
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14.03% |
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17.56% |
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19.26% |
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21.78% |
Based on the information from Question 47, what is the profitability index (PI) of this project?
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0.87 |
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1.11 |
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1.31 |
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1.83. |
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