Business, 10.08.2021 01:30, eta20

Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years. The required return is 9%, and payback cutoff is 4 years. a. What is the payback period?
b. What is the NPV?
c. What is the IRR?
d. Should we accept the project?
e. What decision rule should be the primary decision method?
f. When is the IRR rule unreliable?

Answers: 2

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Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years....