The buda company has an investment that will cost 150000 at


The Buda Company has an investment that will cost $150,000 at the end of year four there will be an additional investment of $40,000. The firm estimates that the cash flows from the project will be $30,000 at the end of year 1 and these will increase at a rate of 15% per year for the following 5 years and generate cash flows of $40,000 for the last 2 years (8 years total). What is the NPV, MIRR, IRR, and the payback period for the project if the required return is 12%? What is the NPV, MIRR, IRR is the required return was 16%?

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Financial Management: The buda company has an investment that will cost 150000 at
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