Question 1: A project has an initial cost (t=0) of $5,000 and will generate the following future cash flows:

$1,500 @ t=1

$1,200 @ t=2

$1,100 @ t=3

$1,000 @ t=4

$900 @ t=5 and

$800 @ t=6

If the W.A.C.C. for the firm is estimated to be 8.00% p.a., answer the following:

• Calculate the NPV of the project
• Calculate the IRR of the project
• Calculate the MIRR of the project
• Calculate the PI of the project
• Calculate the Payback Period of the project