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Consider a project with the following Cash flows 0 1 2 3 ( 1 , 0 0 0 ) 5 , 0 0 0 5

Consider a project with the following Cash flows
0123
(1,000)5,0005,0005,000
If cost of capital is 10% find
i. Find NPV
ii. IRR and MIRR using 20% as years 2 rate and 5% as the re-investment rate
iii. Find the profitability index
iv. Payback period and discounted payment period. If it is a policy to accept projects that pays back in 2 years .
v. Is this project acceptable?

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