Question
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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