Assume the cost of capital for the firm for which you work is 10%. You are analyzing some projects with various capital budgeting techniques. You have decided a payback period of four years or better is acceptable.

1.) Find the NPV for the project with the following cash flows and state whether the project is acceptable.

YR Cash Flow

0 -$750,000

1 $250,000

2 $350,000

3 $375,000

2.) Find the Payback Period and Discounted Payback Period for the project with the following cash flows and state whether the project is acceptable for either technique.

YR Cash Flow

0 -$750,000

1 $135,000

2 $145,000

3 $155,000

4 $165,000

5 $175,000

3.) Find the MIRR and IRR for the following project and state whether the project is acceptable under each technique:

YR Cash Flow

0 -$100,000

1 $85,000

2 -$20,000

3 $74,400