Homework 1. Our firm has invested 90,000 TL in year O and will start operating in year 1. 40,000 TL of initial investment amount (90,000 TL) is financed by bank loan where interest rate is 12% and the payback period is 6 years. The rest of the financing required for the investment is provided by shareholder's equity and its cost is 16%. Net cash flows are as follows: 0 1 2 3 4 5 6 Year Net flows 40,000 cash 1:90.000TL 30,000 40,000 50,000 30.000 15,000 Apply this six investment criteria.

1.Payback Method (PM) 2. Discounted Payback Method (DPM) 3. Profitability Index (PI) 4. Net Present Value (NPV) 5. Internal Rate of Return (IRR) 6. Modified Internal Rate of Return (MIRR)