Monday, February 1, 2010

A5. Investment Criteria

A5. (Investment Criteria)

Corporate Financial Management (3rd Edition)
Emery, Douglas R., Finnerty, John D., & Stowe, John D. (2007)

Individual assignment: Text Problem Set IV:
Chapter 9, Problems

A5. (Investment criteria)
Compute the NPV, IRR, and payback period for the following investment. The cost of capital is 10%.
YEAR 0 1 2 3
Cash flow -200,000 100,000 100,000 150,000

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