Project Financials:
Initial Outlay: $6,000
Annual Cash Inflows:
•Year 1: $1,500
•Year 2: $1,600
•Year 3: $1,700
•Year 4: $1,800
•Year 5: $1,900
Cost of Capital: 14%
Requirements:
1.Determine the net present value (NPV).
2.Compute the internal rate of return (IRR).
3.Calculate the payback period.
4.Evaluate whether the project should be accepted based on IRR.
5.Compute the modified internal rate of return (MIRR).