3 Benihana has prepared the following estimates provided in the table below for the project under consideration. Calculate the payback period, the discounted payback period, net present value and internal rate of return. 4 5 6 7 8 Cost of Capital 11.00% 9 10 11 Initial Investment (time 0) 13 Cash Flows Project A 124,071 28,993 28,630 48,568 31,173 84,078 Year 12 1 14 2 15 16 17 18 19 20 3 4 5 21

3 Benihana has prepared the following estimates provided in the table below for the project under consideration. Calculate the payback period, the discounted payback period, net present value and internal rate of return. 4 5 6 7 8 Cost of Capital 11.00% 9 10 11 Initial Investment (time 0) 13 Cash Flows Project A 124,071 28,993 28,630 48,568 31,173 84,078 Year 12 1 14 2 15 16 17 18 19 20 3 4 5 21

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter13: Capital Budgeting: Estimating Cash Flows And Analyzing Risk

Section: Chapter Questions

Problem 7MC: Calculate the cash flows for each year. Based on these cash flows and the average project cost of...

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