Assume that KAO evaluates all of its projects by applying the Payback, Discounted Payback, NPV, and IRR rules.

Assume the cost of capital is 10%.

Assume cash flows of:

TIME CASH FLOWS

--------------------------------------------------------------

0 -$100

1 +$75

2 +$50

3 +$25

*What is the payback?

*What is the Discounted Payback?

*What is the NPV?

*Is the IRR equal to 28.86%?

1. Yes
2. No

PLEASE SHOW ALL WORK WITH OUT USING EXCEL