Cash flows from a new project are expected to be $10,000, $40,000, $30,000, $30,000 and $40,000 over the next 5 years, respectively. Assuming an initial cost of $100,000 and a required return of 8%, what is the project's PI?

Cash flows from a new project are expected to be $10,000, $40,000, $30,000, $30,000 and $40,000 over the next 5 years, respectively. Assuming an initial cost of $100,000 and a required return of 8%, what is the project's PI?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 1P

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