What is the discounted payback period for the project

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Reference no: EM132826689

Consider the Following 10-year project:

Year/Cash Flow

0/-30000

1/2500

2/5000

3/6750

4/7000

5/7250

6/6000

7/6250

8/8000

9/3750

10/2000

Problem 1: What is the Payback Period for the project? Would you accept this project if the cut-off is 5 years?

Problem 2: What is the Discounted Payback Period for the project at 12% required rate of return? Would you accept this project if the cut-off is 9 years?

Problem 3: What is the NPV of the project if the required rate of return is 12%? Would you accept it?

Problem 4: What is the PI of the project? Would you accept it?

Reference no: EM132826689

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