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Able Corporation has a project with the following cash flows and a 5.8% cost of money: Numbers in parentheses are outflows. Both Year 0 and
Able Corporation has a project with the following cash flows and a 5.8% cost of money: Numbers in parentheses are outflows. Both Year 0 and Year 3 cash flows are outflows.
Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
Cash flow | $(351,000) | $ 95,000 | $168,000 | $(300,000) | $ 280,000 | $280,000 | $268,000 |
- Calculate the net present value ______________
- Calculate the profitability indexes _________________
- Calculate the modified profitability index using the terminal value approach_______________________
- Calculate the internal rate of return _____________________________
- Calculate the modified internal rate of return ________________________
- Calculate the payback period ________________________
- Calculate the present value payback period ______________________
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The net present value Year Cash Flows PVF58 PVF 0 351000 1 350000 1 95000 1058 89792 2 168000 ...Get Instant Access to Expert-Tailored Solutions
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