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    CAPITAL BUDGETING

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    A project has an initial cost of $65,000, expected cash flows of $14,000 per year for 9 years and a cost of capital of 11%. Answer the following:

    a. What is the IRR?

    b. What is the payback period?

    c. What is the NPV?

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    https://brainmass.com/business/capital-budgeting/capital-budgeting-478058

    Solution Summary

    USING EXCEL FORMULAS CALCULATE THE IRR, NPV, PAYBACK PERIOD:

    A project has an initial cost of $65,000, expected cash flows of $14,000 per year for 9 years and a cost of capital of 11%. Answer the following:

    a. What is the IRR?

    b. What is the payback period?

    c. What is the NPV?

    $2.19

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