Fight Finance

Courses  Tags  Random  All  Recent  Scores

Scores
keithphw$6,001.61
Yizhou$489.18
Visitor$462.43
Visitor$370.00
allen$340.00
Donnal$190.00
Visitor$160.00
Visitor$150.00
Visitor$119.09
Visitor$110.00
Visitor$100.00
Visitor$90.00
Visitor$60.00
Visitor$60.00
Visitor$56.09
Visitor$50.00
Koushik ...$43.45
Visitor$40.09
Visitor$40.00
Joe figh...$40.00
 

Question 781  NPV, IRR, pay back period

You're considering a business project which costs $11m now and is expected to pay a single cash flow of $11m in one year. So you pay $11m now, then one year later you receive $11m.

Assume that the initial $11m cost is funded using the your firm's existing cash so no new equity or debt will be raised. The cost of capital is 10% pa.

Which of the following statements about the net present value (NPV), internal rate of return (IRR) and payback period is NOT correct?




Copyright © 2014 Keith Woodward