Question
Able Corporation has Project A with the following cash flows and a 6.7% cost of money: Numbers in parentheses are outflows. Both Year 0 and
Able Corporation has Project A with the following cash flows and a 6.7% 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 | $(312,000) | $ 95,000 | $120,000 | $(280,000) | $ 230,000 | $200,000 | $180,000 |
- Please calculate the net present value __
- Please calculate the profitability indexes (two decimals please)
- Please calculate the modified profitability index using the terminal value approach in the textbook (two decimals please)________
Please calculate the internal rate of return (two decimals please)___
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Securitisation Derivatives A Practioner's Handbook
Authors: Mark Aarons, Vlad Ender, Andrew Wilkinson
1st Edition
1119532272, 978-1119532279
