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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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