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2. A project has the following cash flows C 0 C 1 C 2 C 3 ($1000) $300 $400 $600 What is the projects payback

2. A project has the following cash flows

C0 C1 C2 C3

($1000) $300 $400 $600

What is the projects payback period?

Year

0

1

2

3

Cash Flow

($1000)

$300

$400

$600

Cumulative

($1000)

($700)

($300)

300

a. Calculate the projects NPV at 10%.

b. Calculate the projects PI at 10%.

c. Calculate an IRR for the project in question 2

How would you answer a,b, and c in excel? I am getting 2,054.09 for NPV and not sure if that is correct.

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