Question

You are considering a project with an initial cash outlay of $100,000 and expected free cash...

You are considering a project with an initial cash outlay of $100,000 and expected free cash flows of $23,000 at the end of each year for 6 years. The required rate of return for this project is 10 percent.

a. What is the project’s payback period?

b. What is the project’s discounted payback period?

c. What is the project’s NPV ?

d. What is the project’s PI ?

e. What is the project’s IRR ?

f. What is the project’s MIRR if the re-investment rate is 10 percent?

g. What is the project’s MIRR if the re-investment rate is 12 percent?

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