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4. Project X exhibits the following cash-flow pattern. Initial Investment $325,000 Year Cash-Flow 1 $140,000 2 $120,000 3 $100,000 4 $ 75,000 a. Calculate the
4. Project X exhibits the following cash-flow pattern.
Initial Investment $325,000
Year Cash-Flow
1 $140,000
2 $120,000
3 $100,000
4 $ 75,000
a. Calculate the net present value and profitability index. Assume a cost of capital of 11%.
b. Calculate the projects IRR. Is this project acceptable?
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