A company has an investment opportunity costing $ 400000 with the following expected net cash inflows: 1 2 Years 3 4 5 6 7 1 2 8 9 10 3 4 5 6 7 8 9 10 Cash inflows 70,000 70,000 70,000 Determine the following: a) Pay-back period b) Accounting Rate of Return c) Profitability index at 10% discount rate You are given PV of USD 1 at 10% and 15% discount rate: Year P.V. factor @ 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 70,000 70,000 80,000 100,000 150,000 100,000 40,000 P.V. factor @ 15% 0.870 0.756 0.658 0.572 0.497 0.432 0.376 0.327 0.284 0.247