Question 3 (Total marks =20) You are evaluating an investment project, Project XX, with the following cash flows: Period Cash Flow -$150,000 -$65,000 $65,000 $65.000 $65.000 $65,000 4 5 Calculate the following: (a). Payback period (2 marks) (b). Calculate the discounted cash flows for each year, assuming a 10% discount rate. (3 marks) (c). Discounted payback period, assuming a 12% cost of capital. (3 marks) (d). Net present value, assuming a 12% cost of capital. (2 marks) (e). Profitability index, assuming a 8% cost of capital. (2 marks) (f). Approximate internal rate of return (3 marks) (g). Modified internal rate of return, assuming reinvestment at 10%. (5 marks) Question 4 [14 marks] (a) Consider the probability distribution of the first year cash flows for the ABC Project: Probability Possible Cash flow $1,000 $2,000 $3,000 10% 75% 15% i). Calculate the range of possible cash flows. (2 marks) ii). Calculate the expected cash flow. (4 marks) iii). Calculate the standard deviation of the possible cash flows.(5 marks) iv). Calculate the coefficient of variation of the possible cash flows.(3 marks) GOOD LUCK