You are evaluating an investment project, Project ZZ, with the following cash flows:

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%

LO2

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Period Cash flow 0 -$100,000 1 234 35,027 35,027 35,027 35,027