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Both questions are linked. Need both answered 6. If you invested $180million into a project today, and achieved operating cash flows of S50million, $30million, $40million,

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Both questions are linked. Need both answered

6. If you invested $180million into a project today, and achieved operating cash flows of S50million, $30million, $40million, $80million, and S30million, how would you measure the following: a. Payback period? (1 pt.) b. NPV (assuming 8% cost of capital) (1 pt.) C. IRR (1 pt.) 7. d. Profitability Index (assuming 8% cost of capital) (1 pt.) Given the above cash flow assumptions and cost of capital = 8%), answer the following: a. What 2 primary factors make Payback insufficient? (2 pts) How would you mathematically and verbally describe NPV? (3 pts.) How would you verbally describe IRR? (2 pts.) d. Last, verbally describe the meaning and difference between the NPV and IRR as related to a project's cost of capital. (2 pts.) b. C

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