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Consider the RGV Transportation Project, which requires an investment of $1 billion initially, with subsequent cash flows of $200, $300 million, $400 million and $500

Consider the RGV Transportation Project, which requires an investment of $1 billion initially, with subsequent cash flows of $200, $300 million, $400 million and $500 million.

What is the payback period ?

1. If the cost of capital is 10% what is the NPV of the RGV transportation project

2. What is the IRR of the Transportation Project

3. What is the profitability of the RGV Transportation Project?

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