What is the project payback period

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You are the financial analyst for the ABX. Your boss has asked you to analyze a proposed capital investment. The project has a cost of $20,000 and the cost of capital is 10%. The project's expected net cash flows are as follows:

Year      Expected Net Cash Flow

0                  ($20,000)

1                  12,500

2                  10,000

3                  10,000

4                   8,000

What is the project's payback period? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

What is the project's discounted payback period? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

What is the project's net present value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 1,952.16.)

What is the project's internal rate of return? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

What is the project's modified internal rate of return? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM132281487

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