Concepts underlying the risk analysis and project evaluation

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1. Explain the concepts underlying the risk analysis and project evaluation.

2. Discounted Payback

A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 9 years, and a cost of capital of 11%. What is the project's discounted payback period? Round your answer to two decimal places.

years

3. MIRR

A project has an initial cost of $69,900, expected net cash inflows of $13,000 per year for 7 years, and a cost of capital of 9%. What is the project's MIRR? Round your answer to two decimal places.

%

Reference no: EM131923784

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