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View Full Version : Project Payback, NPC, IRR & Profitability Index


pascalll
Feb 25, 2010, 07:17 PM
Gregor plans to open a pen store in a store front mall. His initial equipment cost is $50,000. At the end of each year, he receives after tax cash flows of $13,000 annually for 5 years, after which he plans sto scrap the equipment and retire to the beaches of Jamaica. His opportunity costof capital is 9.0%
- What is the project's payback period? If he wants to be paid back within 5 years, should he accept the project.
- What is the project's NPV? Should he accept the project
- What is the project's IRR? Should he accept the project
- What is the project's profitabillity Index

morgaine300
Feb 26, 2010, 07:27 PM
Please see the guidelines for posting homework:
https://www.askmehelpdesk.com/finance-accounting/announcement-font-color-ff0000-u-b-read-first-expectations-homework-help-board-b-u-font.html