You invest in a project that costs 1000000 and would yield


You invest in a project that costs $1,000,000 and would yield a EBIT of $300,000 per year. The interest expense is $20,000 and the tax rate is 20%. The EBIT is expected to increase by 1.8% every year. The MARR is found to be 12%.

a) What is the discounted payback of the project?

b) What is the NPV, IRR of the project after 30 years?

c) IRR project at 30 years?

Please show all calculations

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Financial Management: You invest in a project that costs 1000000 and would yield
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