Calculate the traditional payback period

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Reference no: EM131152411

Calculate the traditional payback period, IRR, NPV, and PVI (present value index) for the project with the following cash flows. The opportunity cost of capital for the project is 14%.

Year

Cash Flows

0

-1,500,000

1

400,000

2

600,000

3

550,000

4

450,000

5

200,000

*For full credit please copy and paste any Excel tables you used to arrive at your answer.

Clearly label each final answer (" Payback = XX.XX (to 2 decimal places), IRR = XX.XX% (% to two decimal places), NPV = XX.XX (to the nearest penny), PVI = XX.XX (to 2 decimal places) at the top of the answer box. For full credit paste all Excel tables and work below the final answers.

Reference no: EM131152411

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