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Generate the series of cash flows on your note book as follows CFt = wt*Io I0 = 44901 Cft wt year 44901 - 1 0

Generate the series of cash flows on your note book as follows CFt = wt*Io

I0 = 44901

Cft wt year
44901 - 1 0
23797.53 0.53 1
33226.74 0.74 2
24246.54 0.54 3
The weigts wt are fixed by the chief financial officer

Required

Suppose that you can invest in project say B (over 10 years) with the same ( I0 = 44901 ) and it generates a constant annual cash flow equal to 20% on ( I0 = 44901 )

If the required rate of return is fixed at 10%.

-1 Find the annual cash flow

-2 The net present value

-3 The profitability index

-4 The Equivalent annual annuity

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