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LOUSY Corp. is considering a project that will require an initial investment of 100K$, and whose duration shall be five years. The expected profit after tax for each year is 30K$. The cash flow after tax value for each year is 50K$. The estimated disposal value for the project is 0K$ , and MCC is 20%

Calculate: a) Average rate of return b) Payback Period c)NPV for the project d) If you were a member of the board for LOUSY, would you accept or reject the project? Why?

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M91586013

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