You are on page 1of 1

Quiez 1

Subject: project apprasial Marks: 15


Time: 35 mintues M.com IV
A firm is considering investing in a project with the following cash flows:

Year 1 2 3 4 5 6 7 8
2,00 4,00 3,00 2,00
Net cash flow ($) 3,000 3,500 1,000 1,000
0 0 0 0

The project requires an initial investment of $13,000 and the firm has a required
rate of return of 10 percent. Compute the payback Period and net present value,
and profitbality index also determine whether the project should be accepted.

You might also like