Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects c his risk class is 7 percent, and that the maximum allowable payback and discounted payback statistics for the project are 3.5 and 4.5 vears, respectively. Time: 1 4 5 Cash flow: -$5,300 $1,300 $2,500 $1,700 $1,700 $1,500 $1,300 Use the NPV decision rule to evaluate this project. (Negative amount should be indicated by a minus sign. Do not round ntermediate calculations and round your final answer to 2 decimal places.) NPV
Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects c his risk class is 7 percent, and that the maximum allowable payback and discounted payback statistics for the project are 3.5 and 4.5 vears, respectively. Time: 1 4 5 Cash flow: -$5,300 $1,300 $2,500 $1,700 $1,700 $1,500 $1,300 Use the NPV decision rule to evaluate this project. (Negative amount should be indicated by a minus sign. Do not round ntermediate calculations and round your final answer to 2 decimal places.) NPV
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 14P
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