determine whether the management at Risky Business will accept or reject the project under the five different decision models.
determine whether the management at Risky Business will accept or reject the project under the five different decision models.
Comparing all methods. Risky Business is looking at project with the following estimated cash flow:
Initial Investment at start of project: $3,600,000
Cash flow at end of year one: $500,000
Cash flow at end of years two through six: $625,000 each year
Cash flow at end of years seven through nine: $530,000 each year
Cash flow at end of year ten: $385,000
Risky Business wants to know the payback period. NPV, IRR, MIRR, and PI of this project. The appropriate discount rate for the project is 14%. If the cutoff period is six years for major projects, determine whether the management at Risky Business will accept or reject the project under the five different decision models.