Description of this paper

1. A project will cost $1.8 million. The company u...

Description

Solution


Question

1. A project will cost $1.8 million. The company uses a 12% discount rate as a threshold for accepting capital projects. It is expected to have a 5 year life and return the following: Year 1 $350,000 Year 2 $500,000 Year 3 $600,000 Year 4 $800,000 Year 5 $500,000 a. Calculate the project?s NPV b. 3730292.95??? c. Calculate the Profitability Index d. Calculate the IRR e. Calculate the Payback Period f. Calculate the Discounted Payback Period g. Assuming the funds can be invested at 5%, calculate the Terminal Value and the MIRR

 

Paper#3739 | Written in 18-Jul-2015

Price : $25
SiteLock