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9 ) Co . has a year - end of December 3 1 and they are evaluating the cash flows of some potential investments /

9) Co. has a year-end of December 31 and they are evaluating the cash flows of some potential investments/projects they are considering for their next fiscal year, starting January 1.
Salem Co. is considering a project that yields annual net cash inflows of $420,000 for Years 1 through 5, and a cash inflow of $100,000 in Year 6. The project will require and initial investment of $1,800,000. Salem's cost of capital is 10 percent and their reinvestment rate is 8 percent.
What percentage is Salem's expected IRR for this project?
10) Salem Co. has a year-end of December 31 and they are evaluating the cash flows of some potential investments/projects they are considering for their next fiscal year, starting January 1.
Salem Co. is considering a project that yields annual net cash inflows of $420,000 for Years 1 through 5, and a cash inflow of $100,000 in Year 6. The project will require and initial investment of $1,800,000. Salem's cost of capital is 10 percent and their reinvestment rate is 8 percent.
What percentage is Salem's expected MIRR for this project?
11) Salem Co. has a year-end of December 31 and they are evaluating the cash flows of some potential investments/projects they are considering for their next fiscal year, starting January 1.
Salem Co. is considering a project that yields annual net cash inflows of $420,000 for Years 1 through 5, and a cash inflow of $100,000 in Year 6. The project will require and initial investment of $1,800,000. Salem's cost of capital is 10 percent and their reinvestment rate is 8 percent.
What is Salem's expected Profitability Index for this project?

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