Cricket World Cup (CWC) is considering a project proposal which requires an initial investment of$72,625 and it is expected to have net cash flows of $15,000 per year for 8 years. The firm cashflows are discounted at a rate of 12 percent.a. What is the project's Net Present Value (NPV)? (Rounded to 2 decimal places)b. What is the project's discounted payback period? (Rounded to 2 decimal places.

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What is the project's Net Present Value (NPV)? (Rounded to 2 decimal places) What is the project's discounted payback period? (Rounded to 2 decimal places.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...

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Question

Cricket World Cup (CWC) is considering a project proposal which requires an initial investment of
$72,625 and it is expected to have net cash flows of $15,000 per year for 8 years. The firm cash
flows are discounted at a rate of 12 percent.
a. What is the project's Net Present Value (NPV)? (Rounded to 2 decimal places)
b. What is the project's discounted payback period? (Rounded to 2 decimal places.

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