Please work on these problems and submit them.

--- Primus Corp. is planning to convert an existing warehouse into a new plant that will increase its production capacity by 45 percent. The cost of this project will be $7,125,000. It will result in additional cash flows of $1,875,000 for the next eight years. The company uses a discount rate of 12 percent.

What is the payback period?

Payback period = Initial cost of investment / Cash flow

= $ 7,125,000 / $ 1,875,000

= 3.8 years

What is the NPV for the project?

Net present value (NPV) = $ 9,314,325 - $ 7,125,000

= $ 2,189,325

What is the IRR for the project?

Internal Rate of Return (IRR) is the rate of return created by a project when the net present value (NPV) is zero

--- Skywards Inc., an airline caterer, is purchasing refrigerated trucks at a total cost of $3.25 million. After-tax net income from this investment is expected to be $750,000 for the next five years. Annual depreciation expense was $650,000. The companys cost of capital is 15 percent.

Compute the discounted payback for this project?

Compute the NPV for this project

Compute the IRR for this project

You are considering a project that has an initial outlay of $1million. The profitability index of the project is 2.24. What is the NPV of the project?

Identify the weaknesses of the payback period method.

--- Management of Franklin Mints, a confectioner, is considering purchasing a new jelly bean-making machine at a cost of $312,500. They project that the cash flows from this investment will be $121,450 for the next seven years. If the appropriate discount rate is 14 percent, what is the NPV for the project?