What is the projects projected payback period the firms


Given the following cash flows, and a required return (cost of capital, risk-adjusted-discount-rate) of 15%, answer the questions below.

Initial Outlay - ($350,000) RRR - 15%

OCF1 - $100,00

OCF2 - $100,00

OCF3 - $100,000

OCF4 - $100,000

OCF5 - $150,000

A) What is the project’s projected Payback period? The firm's payback requirement is 2 years.

B) What is the project’s projected NPV?

C) What is the project’s projected Profitability index?

D) What is the project’s projected internal rate of return?

E) Should this the firm invest in this project? Why or why not?

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Financial Management: What is the projects projected payback period the firms
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