Explore BrainMass

Explore BrainMass

    Capital Budgeting

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Given the following project cash flows, identify the correct statement(s). The firm's cost of capital is 15%.

    Cash Flow

    0 -50
    1 150
    2 75
    3 -10

    I. This project will have two IRRs.
    II. The NPV of the project is $180.57.
    III. The profitability index of the project is 2.61.
    IV. The payback period of the project is 1.33.

    a. I only
    b. II only
    c. II and III only
    d. IV only
    e. I and IV only

    © BrainMass Inc. brainmass.com June 3, 2020, 5:30 pm ad1c9bdddf
    https://brainmass.com/business/capital-budgeting/capital-budgeting-29202

    Solution Summary

    Answers a multiple choice question on Capital Budgeting.

    $2.19

    ADVERTISEMENT