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Project Valuation Table: Year Cash Inflow ($) Cash Outflow ($) 0 0 -10,000,000 1 3,000,000 1,000,000 2 4,000,000 1,200,000 3 5,000,000 1,500,000 4 6,000,000 2,000,000
Project Valuation
Table:
Year | Cash Inflow ($) | Cash Outflow ($) |
0 | 0 | -10,000,000 |
1 | 3,000,000 | 1,000,000 |
2 | 4,000,000 | 1,200,000 |
3 | 5,000,000 | 1,500,000 |
4 | 6,000,000 | 2,000,000 |
Requirements:
- Calculate the Net Present Value (NPV) assuming a discount rate of 10%.
- Determine the project's profitability index.
- Evaluate whether the project should be accepted based on NPV and profitability index.
- Calculate the internal rate of return (IRR).
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