Calculate the Payback period, Accounting Rate of Return and the Net Present Value (using a 17% discount factor) and a fair approximation range of the Internal Rate of Return for the data presented below

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter14: Security Structures And Determining Enterprise Values
Section: Chapter Questions
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Calculate the Payback period, Accounting Rate of Return and the Net Present Value (using a 17% discount factor) and a fair approximation range of the Internal Rate of Return for the data presented below

Inflows ($) Outflows ($) Net Cashflow ($)
Year 0 (Investment)
250000
-250000
Year 1
175000
50000
125000
Year 2
175000
50000
125000
Year 3
125000
60000
65000
Year 4
200000
70000
130000
Year 5
200000
85000
115000
Residual Value
25000
25000
Project Lifetime Surplus
335000
Transcribed Image Text:Inflows ($) Outflows ($) Net Cashflow ($) Year 0 (Investment) 250000 -250000 Year 1 175000 50000 125000 Year 2 175000 50000 125000 Year 3 125000 60000 65000 Year 4 200000 70000 130000 Year 5 200000 85000 115000 Residual Value 25000 25000 Project Lifetime Surplus 335000
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