The expected cashflows of a project are: Cash flows year 1 2 3 4 5 \[ \begin{array}{l} 20,000 \\ 30,000 \\ 40,000 \\ 50,060 \\ 30,000 \end{array} \] The Cashpelemes outflows is \( R_{s} \quad 100,000 \) The cost of Capital is \( 10^{\circ} \% \) calculate the FF. a.) \( N P V \) b. Profitability Index c. IKR d. Pay-back Period ?. Discounted Payback Period
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The formula for NPV is: \[ NPV = \sum_{t=1}^{n} \frac{CF_t}{(1+r)^t} - CF_0 \] where: - NPV is the net present value - CF_t is the cash flow in year t - r is the discount rate (cost of capital) - t is the time period - n is the total number of time periods - Show more…
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