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Blessingflow · Jun 25, 2007, 09:50 AM

I am considering a major expansion of a product line hand and have estimated the following free cash flows associated with such an expansion. The initial outlay associated with the expansion would be $1,950,000, and the project would generate from cash flows of $450,000 per year for six years. The appropriate required rate of return is 9 percent.
calculate the net present value, profitability indes, and the internal rate or return.

Blessingflow · Jun 25, 2007, 09:50 AM

Originally Posted by Blessingflow

I am considering a major expansion of a product line hand and have estimated the following free cash flows associated with such an expansion. The intial outlay associated with the expansion would be $1,950,000, and the project would generate from cash flows of $450,000 per year for six years. The appropriate required rate of return is 9 percent.
calculate the net present value, profitability indes, and the internal rate or return.

I am considering a major expansion of a product line hand and have estimated the following free cash flows associated with such an expansion. The initial outlay associated with the expansion would be $1,950,000, and the project would generate from cash flows of $450,000 per year for six years. The appropriate required rate of return is 9 percent.
calculate the net present value, profitability indes, and the internal rate or return.