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Assume a firm with a 12% cost of capital is considering an investment with the following cash flows. C0 C1 C2 C3 C4 C5 |

Assume a firm with a 12% cost of capital is considering an investment with the following cash flows.

C0 C1 C2 C3 C4 C5

| | | | | |

($90) ($10) $30 $30 $30 $80

a.What is the Payback Period of the investment?

b.What is the NPV of the project?

c.What is the Profitability Index (PI) of the project?

d. What is the MIRR of the project?

e. What is the IRR of the project?

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