Taylor Business is considering an investment of $ 210,000 in a capital project and $ 200,000 in working capital during the first year of operation. The yearly cash inflow for the project is as follows:

Years 1 to 3 $ 50,000

Years 4 to 7 $ 70,000

Years 8 to 12 $ 80,000

At the end of the project, the company will sell the assets for $100,000 of its value and recover the 60% of its working capital. The companys weighted average cost of capital is 10%.

The undiscounted cash outflow is

options:

($410,000)

($255,990)

($377,280)

($390,000)

The undiscounted cash inflow is

options:

$1,500,000

$1,050,000

$1,230,300

$975,000

The undiscounted net cash flow is

options:

$640,000

$497,330

$700,000

$400,370

The payback period is

options:

7 years and 3 months

6 years and 7 months

5 years and 3 months

8 years and 2 months

Present value of the cash outflow is

options:

($365,376)

($533,133)

($391,818)

($403,188)

The present value of the cash inflow is

options:

$684,950

$400,130

$820,390

$516,770

The net present value is

options:

$209,182

$124,952

$99,880

$133,290

The approximate internal rate of return is

options:

19%

11%

8%

15%

The profitability index is

options:

1.32

1.99

0.97

2.33