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    pascalll's Avatar
    pascalll Posts: 1, Reputation: 1
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    #1

    Feb 25, 2010, 07:17 PM
    Project Payback, NPC, IRR & Profitability Index
    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's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Feb 26, 2010, 07:27 PM

    Please see the guidelines for posting homework:
    https://www.askmehelpdesk.com/financ...-b-u-font.html

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