The cash flows associated with an investment project are as follows: Year Project Y (200 000) 100 000 100 000 120 000 110 000 1 2 3 4 The discount rate is 8 percent. What's the discount payback period of the projects? (compile a spreadsheet) Calculate NPV, PI of a projects Calculate IRR of a projects Should the firm accept the project? a) b) c) d)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The cash flows associated with an investment project are as follows:
Project Y
(200 000)
Year
1
100 000
2
100 000
3
120 000
4
110 000
The discount rate is 8 percent.
What's the discount payback period of the projects? (compile a spreadsheet)
Calculate NPV, PI of a projects
Calculate IRR of a projects
Should the firm accept the project?
a)
b)
c)
d)
Transcribed Image Text:The cash flows associated with an investment project are as follows: Project Y (200 000) Year 1 100 000 2 100 000 3 120 000 4 110 000 The discount rate is 8 percent. What's the discount payback period of the projects? (compile a spreadsheet) Calculate NPV, PI of a projects Calculate IRR of a projects Should the firm accept the project? a) b) c) d)
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