Use the following information to answer questions 11-15: A firm evaluates a project with the following cash flows. The firm has a 2 year payback period criteria and a required return of 11 percent. Year 0 1 2 3 4 5 Cash flow (OMR) -24,000 17,000 12,000 9,000 -8,000 11,000 1-Whatis the net present value for the project?
Use the following information to answer questions 11-15: A firm evaluates a project with the following cash flows. The firm has a 2 year payback period criteria and a required return of 11 percent. Year 0 1 2 3 4 5 Cash flow (OMR) -24,000 17,000 12,000 9,000 -8,000 11,000 1-Whatis the net present value for the project?
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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Use the following information to answer questions 11-15:
A firm evaluates a project with the following cash flows. The firm has a 2 year payback period criteria and a required return of 11 percent.
Year
0 1 2 3 4 5
Cash flow (OMR) -24,000 17,000 12,000 9,000 -8,000 11,000
1-Whatis the
2-Whatis the payback period for the project?
3-what is the discounted payback period for the project?
4-What is the profitability index for the project?
5-Given your analysis, should the firm accept or reject the project?
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