Question

Compute the Payback period, NPV, IRR, and PI and give accept/reject decision for the following project....

  1. Compute the Payback period, NPV, IRR, and PI and give accept/reject decision for the following project. The cost of capital is 10 percent. Assume the policy payback period is 3 years.
Year Cash Inflow (Outflow)
0 (400)
1 100
2 200
3 200
4 300
Business   Finance   
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Answer #1

Calc:

The project should be accepted as NPV is positive

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