Answered: Assume initial investment is $95,000…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter11: The Cost Of Capital

Section: Chapter Questions

Problem 19PROB

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Please compute Payback Period, Net Present Value (NPV) and Internal Rate of Return (IRR). For Payback Period, provide your answer to the nearest two decimal places (X.XX) -- do not write 'years' or 'yrs' please. For NPV, please indicate the whole dollar value with proper commas -- do not use dollar signs. For IRR, list the percentage to the nearest two places (X.XX%) and include the percent sign.

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Assume initial investment is $95,000 for all three projects and interest = 6.0%:
Project A
Year Cash Flows
1
25,000
25,000
25,000
20,000
20,000
2
3
4
5
Project B
Cash Flows
20,000
25,000
25,000
20,000
25,000
Project C
Cash Flows
25,000
25,000
20,000
25,000
20,000

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