(Payback period, net present value, profitability index, and internal rate of return calculations) You are considering a project with an initial cash outlay of $77,000 and expected cash flows of $21,560 at the end of each year for six years. The discount rate for this project is 9.8 percent. a. What are the project's payback and discounted payback periods? b. What is the project's NPV? c. What is the project's PI? d. What is the project's IRR? a. The payback period of the project is 3.57 years. (Round to two decimal places.) If the discount rate for this project is 9.8%, the discounted payback period of the project is 4.61 years. (Round to two decimal places.). b. The project's NPV is $ 17,452. (Round to the nearest dollar.) c. The project's PI is 1.22. (Round to two decimal places.) d. The project's IRR is 16.74%. (Round to two decimal places.)
(Payback period, net present value, profitability index, and internal rate of return calculations) You are considering a project with an initial cash outlay of $77,000 and expected cash flows of $21,560 at the end of each year for six years. The discount rate for this project is 9.8 percent. a. What are the project's payback and discounted payback periods? b. What is the project's NPV? c. What is the project's PI? d. What is the project's IRR? a. The payback period of the project is 3.57 years. (Round to two decimal places.) If the discount rate for this project is 9.8%, the discounted payback period of the project is 4.61 years. (Round to two decimal places.). b. The project's NPV is $ 17,452. (Round to the nearest dollar.) c. The project's PI is 1.22. (Round to two decimal places.) d. The project's IRR is 16.74%. (Round to two decimal places.)
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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I was able to get a-c though ho do you get the IRR
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