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PART A: You have the following information on a project's cash flows. The cost of capital is 11.0% Year Cash flows 0 -$115,000 1 23,000
PART A:
You have the following information on a project's cash flows. The cost of capital is 11.0%
Year | Cash flows |
0 | -$115,000 |
1 | 23,000 |
2 | 23,000 |
3 | 22,000 |
4 | 32,000 |
5 | 51,000 |
The NPV of the project is $____. Round to two decimal places.
PART B:
You have the following information on a project's cash flows.
Year | Cash flows |
0 | -$112,000 |
1 | 24,000 |
2 | 31,000 |
3 | 31,000 |
4 | 74,000 |
5 | 55,000 |
The project's payback is ____ years. Round it to two decimal places.
PART C:
You have the following information on a project's cash flows. The project's required rate is 12.5%.
Year | Cash flows |
0 | -$87,000 |
1 | 22,000 |
2 | 28,000 |
3 | 33,000 |
4 | 91,000 |
The project's profitability index is ____ . Round it to two decimal places.
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