3. A project requires an initial investment of $70,000 and is expected to generate cashinflows of $20,000 per year for five years. What is the Internal Rate of Return (IRR)?

4. A company is considering purchasing a piece of machinery for $120,000. It expectsto generate additional cash inflows of $40,000 per year for five years. What is the

Accounting Rate of Return (ARR)?

5. A project requires an initial investment of $80,000 and is expected to produce cashinflows of $100,000 over its life. What is the Profitability Index (PI) if the required return

is 10%?

asked by guest
on Nov 14, 2024 at 4:57 pm



Mathbot Says...

I wasn't able to parse your question, but the HE.NET team is hard at work making me smarter.


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