Question 4

ABC Ltd is considering a project with the following cash flows:

• Initial investment: $300,000
• Year 1: $100,000
• Year 2: $120,000
• Year 3: $140,000
• Year 4: $160,000
• Year 5: $180,000

The company’s required rate of return is 15%. Calculate:

1. Net Present Value (NPV).
2. Payback Period.
3. Discounted Payback Period.
4. Internal Rate of Return (IRR).
5. Modified Internal Rate of Return (MIRR) assuming the reinvestment rate is 10%.