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Able Corporation has Project A with the following cash flows and a 9.6% cost of money: Numbers in parentheses are outflows. Both Year 0 and

Able Corporation has Project A with the following cash flows and a 9.6% cost of money: Numbers in parentheses are outflows. Both Year 0 and Year 3 cash flows are outflows.

Year Cash flow

0 $(351,000)

1 $ 95,000

2 $186,000

3 $(300,000)

4 $ 280,000

5 $260,000

6 $268,000

1.Please calculate the net present value_______

2.Please calculate the profitability indexes (two decimals)_______

3.Please calculate the modified profitability index using the terminal value approach_______

4.Please calculate the internal rate of return_________

5.Please calculate the modified internal rate of return________

6.Please calculate the payback period______

7.Please calculate the present value payback period_________

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