5. (15 Percent) You must analyze a project for a firm. The firm's WACC is 11.5%, and the expected cash flows of the project are as follows: Year Cash Flow 0 -$11,000 1 $6,500 2 $3,000 3 $3,000 4 $1,000 Calculate the project's NPV, IRR, MIRR, payback, and discounted payback.

5. (15 Percent) You must analyze a project for a firm. The firm's WACC is 11.5%, and the expected cash flows of the project are as follows: Year Cash Flow 0 -$11,000 1 $6,500 2 $3,000 3 $3,000 4 $1,000 Calculate the project's NPV, IRR, MIRR, payback, and discounted payback.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

5. (15 Percent) You must analyze a project for a firm. The firm's WACC is 11.5%, and the
expected cash flows of the project are as follows:
Year
Cash Flow
0
-$11,000
1
$6,500
2
$3,000
3
$3,000
4
$1,000
Calculate the project's NPV, IRR, MIRR, payback, and discounted payback.

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