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As a project manager you are evaluating an investment project, Project ZZ, with the following cash flows: Period Cash Flow 0 1 2 3 -$100,000

As a project manager you are evaluating an investment project, Project ZZ, with the following cash flows:

Period

Cash Flow

0

1

2

3

-$100,000

20,000

40,000

60,000

Calculate the following including your investment decisions to accept or reject if any:

Payback period.

Discounted payback period, assuming a 5% cost of capital.

Discounted payback period, assuming a 10% cost of capital.

Net present value, assuming a 5% cost of capital.

Net present value, assuming a 10% cost of capital.

Profitability index assuming a 5% cost of capital.

Profitability index assuming a 5% cost of capital.

Internal Rate of Return

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