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Al-Pinar company facing a new investment opportunity, Al-Pinar's manager will accept this investment only if its maximum payback is 3 years & 3 months. the

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Al-Pinar company facing a new investment opportunity, Al-Pinar's manager will accept this investment only if its maximum payback is 3 years & 3 months. the firm will pay a 5% coupon interest rate to finance the machine required for the new investment cost $5,000,000 and it is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $700,000 in year 3, and $1,800,000 in year 4? 3.38 years Calculate the Payback period Accept the new investment Based on your answer in part (1) should the firm accept or reject the new investment opportunity? Discounted Payback period Based on your finding in part (3) should the firm accept or reject the new investment opportunity? Calculate Net Present Value Based on your finding in part (5) should the firm accept or reject the new investment opportunity? Calculate the Profitability Index 12:44 PM 80% 8 Based on your finding in part (7) should the firm accept or reject the new investment opportunity? calculate Economic value-added for the second year complete the statement; Internal Rate of Return makes NPV= Finish attempt

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