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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,
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?
0.31
1.31
0.21
1.21
What is this project's Net Present Value?
$186,138.36
$53,362.23
$44,138.36
$56,245.43
What is this project's Internal Rate of Return (IRR)?
11.30%
14.65%
35.16%
21.87%
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