Jordan_Jason_Mini Project 2 - $89,144.37 Year 9 $95,000.00...

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Jason Jordan Business Finance - 3311 Mini Project #2 - Capital Budgeting 1) Beginning $(620,000.00) Cum. Cash Flow Dis. Annual Cash Flow Year 1 $150,000.00 $(470,000.00) $138,888.89 Year 2 $150,000.00 $(320,000.00) $128,600.82 Year 3 $150,000.00 $(170,000.00) $119,074.84 Year 4 $165,000.00 $(5,000.00) $121,279.93 Year 5 $165,000.00 $160,000.00 $112,296.23 Year 6 $165,000.00 $325,000.00 $103,977.99 Year 7 $165,000.00 $490,000.00 $96,275.92 Year 8 $165,000.00 $655,000.00
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Unformatted text preview: $89,144.37 Year 9 $95,000.00 $750,000.00 $47,523.65 Year 10 $95,000.00 $845,000.00 $44,003.38 Year 11 $95,000.00 $940,000.00 $40,743.87 Year 12 $95,000.00 $1,035,000.00 $37,725.81 Cumulative Discounted Cash Flow $1,079,535.68 2) Payback Period 4.03 yrs NPV $306,438 PI 1.49 IRR 20% 3) After reviewing the information I would sugest that the project go ahead as the payback period would be reached at the 4th year....
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