Answer only PART 3

1. Assume the firm invests $142,000 today to get $45,000 at Year 1 (i.e. one year from now), $51,000 at Year 2, $42,000 at Year 3, $45,000 at Year 4, $36,000 at Year 5, and $45,000 at Year 6. Assuming the required rate of return for the firms industry is 11.3%, what is this projects profitability index?

Ans: 1.31

2. What is this project's Net Present Value?

Ans: $44,138.36

PART 3

3. What is this project's Internal Rate of Return (IRR)?