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Initial investment: $150,000 Yearly net inflows: Year 1: $40,000 Year 2: $45,000 Year 3: $35,000 Year 4: $60,000 Requirements: Calculate the payback period. Find the
- Initial investment: $150,000
- Yearly net inflows:
- Year 1: $40,000
- Year 2: $45,000
- Year 3: $35,000
- Year 4: $60,000
- Requirements:
- Calculate the payback period.
- Find the net present value (NPV) at a discount rate of 10%.
- Determine the internal rate of return (IRR).
- Compute the profitability index.
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