1. If you have the following information about ice-cream manufacturing unit Year Net Discount rate Returns 10% 2500 1. 700 0.909 -1000 0.826 3. 1450 0.751 1200 0.683 1700 0.621 6. 1350 0.564 7. -750 0.513 450 0.467 6. 1300 0.424 10 900 0.386 Calculate a) Discounted Payback period b) IRR and if the hurdle rate 35%, shall we accept the project or not ? Why? ) NPV

1. If you have the following information about ice-cream manufacturing unit Year Net Discount rate Returns 10% 2500 1. 700 0.909 -1000 0.826 3. 1450 0.751 1200 0.683 1700 0.621 6. 1350 0.564 7. -750 0.513 450 0.467 6. 1300 0.424 10 900 0.386 Calculate a) Discounted Payback period b) IRR and if the hurdle rate 35%, shall we accept the project or not ? Why? ) NPV

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs

Section: Chapter Questions

Problem 1EP

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