The followingprojects all have an initial investment of $80,000. For each of the
ID: 2770564 • Letter: T
Question
The followingprojects all have an initial investment of $80,000. For
each of theprojects find; the payback period, the net present value,
theinternal rate of return, and the profitability index. Thefirm’s
costof capital is 18 percent. Which project Would you selectand
why, yourbudget is limited to $80,000. Use a
spreadsheetpackage (such as; Microsoft EXCEL or Quattro Pro)to’
complete thisproblem. You are also required to submit the cellformulas
08-A54 08-G13 08-K01 08-P56 08-$43
Year2 20,000 10,000 30,000
Year3 20,000 15,000 40,000 10,000
Year4 20,000 15,000 $160,000 -60,000
Year5 20,000 25,000 40,000
Year6 20,000 25,000 40,000
Year7 20,000 30,000 40,000
Year8 20,000 30,000 80,000
Explanation / Answer
x.x
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