Question: Cassidy and Sons is reviewing a project with an initial cash outflow of $250,000. An additional $100,000 will
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Question: Cassidy and Sons is reviewing a project with an initial cash outflow of $250,000. An additional $100,000 will
Question: Cassidy and Sons is reviewing a project with an initial cash outflow of $250,000. An additional $100,000 will have to be invested after the first year, followed by an additional investment of $50,000 at the end of the second year. Beginning at the end of year 3, the project is expected to generate cash flows of $90,000 per year for the next eight years. a. Calculate the project's payback period, IRR and NPV and Pl at a cost of capital of 8% b. What concerns might Cassidy have regarding this project beyond the financial calculations from part (a)? Insert contourt