0 (Initial Cost)....................................................... ($55,000)

1 .......................................................................... 15,000

2 .......................................................................... 18,000

3 .......................................................................... 20,000

4 .......................................................................... 22,000

5 .......................................................................... 24,000

Required Rate........................................................... 12.5%

Instructions

1. Calculate the Discounted Payback period (DPBP), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR) (at reinvestment rate of 7%), Net Present Value (NPV), Profitability Index (PI) for projects.