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Evaluate and determine the Net Present Value (NPV), the Internal Rate of Return (IRR), and the Profitability Index (PI) for a capital project with the following information.

Initial Investment Asset: $36,022

Annual Cost: $833

Discount Rate: 14%

Tax Rate: 35%

5 Year Straight Line Depreciation

Salvage Value:1500

Interest Rates

Y1: 20%

Y2: 32%

Y3: 19%

Y4: 12%

Y5: 12%

Y6: 6%

Cash Flows

Y1: 31200

Y2: 31200

Y3: 31200

Y4:31200

Y5:31200

Explain why this project is feasible.

 

 

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Finance 2 Days Ago 5 Views
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