Braun Industries is considering an investment project that has the following cash flows: Year 0 1 2 3 Project Cash Flows -$634 $374 $309 $327 The company's WACC is 13.3 percent. What is the project's payback, internal rate of return (IRR), and net present value (NPV)? Should this project be accepted? O 1.54 years; 31.31% ; $191.64; No O 1.84 years; 28.31% ; $161.64; Yes O 1.64 years; 30.31%; $181.64; Yes O 1.74 years; 29.31% ; $171.64; Yes 1.54 years; 31.31%; $191.64; Yes

Cornerstones of Cost Management (Cornerstones Series)
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Chapter19: Capital Investment
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Problem 22E
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Braun Industries is considering an investment project that has the following cash
flows:
Year
0
1
2
3
Project
Cash Flows
-$634
$374
$309
$327
The company's WACC is 13.3 percent. What is the project's payback, internal rate of
return (IRR), and net present value (NPV)? Should this project be accepted?
O 1.54 years; 31.31% ; $191.64; No
O 1.84 years; 28.31% ; $161.64; Yes
O 1.64 years; 30.31% ; $181.64; Yes
O 1.74 years; 29.31% ; $171.64; Yes
O 1.54 years; 31.31% ; $191.64; Yes
Transcribed Image Text:Braun Industries is considering an investment project that has the following cash flows: Year 0 1 2 3 Project Cash Flows -$634 $374 $309 $327 The company's WACC is 13.3 percent. What is the project's payback, internal rate of return (IRR), and net present value (NPV)? Should this project be accepted? O 1.54 years; 31.31% ; $191.64; No O 1.84 years; 28.31% ; $161.64; Yes O 1.64 years; 30.31% ; $181.64; Yes O 1.74 years; 29.31% ; $171.64; Yes O 1.54 years; 31.31% ; $191.64; Yes
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