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Initial outlay: $7,000 Operating Cash Inflows: $2,000 annually for 5 years Cost of Capital: 11% Compute the Net Present Value (NPV). Compute the Internal Rate

Initial outlay: $7,000
 Operating Cash Inflows: $2,000 annually for 5 years
 Cost of Capital: 11%

  1. Compute the Net Present Value (NPV).
  2. Compute the Internal Rate of Return (IRR).
  3. Compute the Payback Period.
  4. Determine the Profitability Index (PI).
  5. Should the project be accepted?

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