ATL International evaluates capital projects using the net present value, internal rate of return, profitability index, and payback methods. Project XYZ has an IRR of 14.5%, profitability index of 1.0, an initial cash outflow of $375,000, and a payback period of 5 years and 0 months. For capital projects management requires a rate of return of 14.5%. What is the project's net present value?
ATL International evaluates capital projects using the net present value, internal rate of return, profitability index, and payback methods. Project XYZ has an IRR of 14.5%, profitability index of 1.0, an initial cash outflow of $375,000, and a payback period of 5 years and 0 months. For capital projects management requires a rate of return of 14.5%. What is the project's net present value?
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 14P
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