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Bumblebee Limited is evaluating a project whose expected cash flows are as follows: Year Cashflow 0 -5,00,000 1 1,00,000 2 2,00,000 3 3,00,000 4 1,00,000

Bumblebee Limited is evaluating a project whose expected cash flows are as follows:

Year

Cashflow

0

-5,00,000

1

1,00,000

2

2,00,000

3

3,00,000

4

1,00,000

1. What is the NPV of the project if the cost of capital is 10 percent?

2. What is the IRR of the project?

3.What is the Modified NPV of the project if the reinvestment rate is 13%?

4.What is the Modified IRR (MIRR)of the project if the reinvestment rate is 13%?

5. What is the unrecovered investment balance at the end of year 2?

6. What is the PI?

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