Question
Please use the following information to answer the remaining problems : Able Corporation has Project A with the following cash flows and a 7.6% cost
Please use the following information to answer the remaining problems:
Able Corporation has Project A with the following cash flows and a 7.6% cost of money: Numbers in parentheses are outflows. Both Year 0 and Year 3 cash flows are outflows.
Year 0 1 2 3 4 5 6
Cash flow $(351,000) $ 95,000 $180,000 $(280,000) $ 280,000 $260,000 $180,000
1.Please calculate the net present value ______________
2.Please calculate the profitability indexes (two decimals please)_________________
3.Please calculate the modified profitability index using the terminal value approach in the textbook (two decimals please)_______________________
4.Please calculate the internal rate of return (two decimals please)_____________________________
5.Please calculate the modified internal rate of return (two decimals please and per the book)________________________
6.Please calculate the payback period (two decimals please)________________________
7.Please calculate the present value payback period (two decimals please)______________________
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