Calculate the Payback period, Accounting Rate of Return and the Net Present Value (using a 17% discount factor) and a fair approximation range of the Internal Rate of Return for the data presented below
Calculate the Payback period, Accounting Rate of Return and the Net Present Value (using a 17% discount factor) and a fair approximation range of the Internal Rate of Return for the data presented below
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Calculate the Payback period, Accounting

Transcribed Image Text:Inflows ($) Outflows ($) Net Cashflow ($)
Year 0 (Investment)
250000
-250000
Year 1
175000
50000
125000
Year 2
175000
50000
125000
Year 3
125000
60000
65000
Year 4
200000
70000
130000
Year 5
200000
85000
115000
Residual Value
25000
25000
Project Lifetime Surplus
335000
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