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What are zondo npv and pi

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Question - Project Zondo requires an initial outlay of $45,000 and results in a single cash inflow of $66,367.50 after five years.

a. If the cost of capital is 9.8% what are Zondo's NPV and PI? Is the project acceptable under each of these techniques?

b. What is project Zondo's IRR? Is it acceptable under IRR?

c. What are Zondo's NPV and PI if the cost of capital is 12%? Is the project acceptable under that condition.

d. What is Zondo's payback period? Does payback make much sense for a project like Alpha? Why?

Reference no: EM132973184

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