a. A capital investment project has an initial cost of $35,000 and expected net cash inflows of

$10,000, $20,000, and $30,000 in the next 3 years, respectively. The weighted average cost of capital (WACC) is 10%. Calculate the net present value (NPV).

b. Is the internal rate of return (IRR) of this project greater than, equal to, or less than the weighted average cost of capital?

c. Calculate the modified internal rate of return (MIRR).

d. Calculate the profitability index.

e. Apply two capital budgeting decision criteria to explain why the capital investment project

should be accepted or rejected