Project S has a cost of $65,000, and its expected net cash inflows are $15,000 per yearfor 8 years.a) What is the project's payback period (to the closest year)?b) The cost of capital is 14%. What is the project's NPV?c) What is the project's IRR?Show all work for credit.

Certainly! Let's delve deeper into each concept:a) **Payback Period**:The payback period is a simple…

Answered: Project S has a cost of $65,000, and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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Project S has a cost of $65,000, and its expected net cash inflows are $15,000 per year for 8 years. a) What is the project's payback period (to the closest year)? b) The cost of capital is 14%. What is the project's NPV? c) What is the project's IRR? Show all work for credit.