Problem:
You are considering a project with an initial cash outlay of $85,000 and expected cash flows of $22,950 each year for six years. The iscount rat for this project is 9.8%
Required:
Question 1: What are the projects payback and discounted payback periods?
Question 2: What are the project's NPV?
Question 3: What are the projects PI?
Question 4: What are the projects IRR?
Note: Please show how to work it out.