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anchor gaming inc. is investigating a project with the following cash flows. anchor gaming has a weighted average cost of capital of 14%. what is the payback period and discounted payback period for this project? what is the net present value (npv) and profitability index (pi) of the project?

User Snacky
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Final answer:

Without specific cash flow data, it is not possible to calculate the payback period, discounted payback period, net present value (NPV), or profitability index (PI) for the project in question.

Step-by-step explanation:

To calculate the payback period, discounted payback period, net present value (NPV), and profitability index (PI) for the project being considered by Anchor Gaming Inc., we would need to have details about the specific cash flows of the project. Generally, the payback period is the amount of time it takes to recover the initial investment from the cash inflows. However, because the question lacks specific cash flow data, it's not possible to provide an exact payback period.

The discounted payback period is similar to the payback period, but it takes into account the time value of money by discounting the cash flows. Again, without the actual cash flow figures, we can't compute the discounted payback period for the project.

The NPV is calculated by discounting all the cash flows of the project at the company's weighted average cost of capital and subtracting the initial investment. And finally, the PI is found by dividing the present value of future cash flows by the initial investment. Yet again, without the cash flow figures these values can't be calculated.

User AleFranz
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