Info

105,600

Total project cash flow

-$820,000

$107,169

$212,113

$250,673

$232,723

$214,040

$189,290

$156,290

$266,204

Cumulative cash flow

-$820,000

-$712,831

-$500,718

-$250,045

-$ 17,322

$196,718

$386,008

$542,298

$808,502

Discounted cash flow @ 15%

- 820,000

93,190

160,388

164,821

133,060

106,416

81,835

58,755

87,023

Net present value (15%) = $65,488 Internal rate of return = 17.24% Payback =4.08 years

Net present value (15%) = $65,488 Internal rate of return = 17.24% Payback =4.08 years

Ross et al.: Fundamentals of Corporate Finance, Sixth Edition, Alternate Edition

IV. Capital Budgeting

10. Making Capital Investment Decisions

© The McGraw-Hill Companies, 2002

CHAPTER 10 Making Capital Investment Decisions

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