Reference no: EM131313150
You are evaluating an investment project with the following cash flows:
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Period
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Cash Flow
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0
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-$100,000
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1
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35,000
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2
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35,000
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3
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35,000
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4
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35,000
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Calculate the following:
a. Payback period
b. Discounted payback period, assuming a 10% cost of capital
c. Discounted payback period, assuming a 16% cost of capital
d. Net present value, assuming a 10% cost of capital
e. Net present value, assuming a 16% cost of capital
f. Profitability index, assuming a 10% cost of capital
g. Profitability index, assuming a 16% cost of capital
h. Internal rate of return i. Modified internal rate of return, assuming reinvestment at 0% j. Modified internal rate of return, assuming reinvestment at 10%.
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What is the projects profitability index
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