Use the information in the table above for the following 5 questions.

A capital investment project is estimated to have the following after-tax cash flows, by year:

0	1	2	3	4
-$30,000	$7,500	$12,500	$5,000	$15,000

The company utilizes a discount rate of 10% to evaluate capital projects. You may have rounding errors in your calculations so choose the closest answer. Assume cash flows occur evenly over the year.

The PAYBACK for the project shown above is:

		2.16
		3.33
		3.15
		2.5
		4.5

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The DISCOUNTED PAYBACK for the project shown above is:

		2.27
		3.39
		3.88
		Does not payback in 4 years.
		5.61

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The NET PRESENT VALUE for the project shown above is:

		$1,789
		$5,672
		$1,150
		$3,113
		$2,721

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The INTERNAL RATE OF RETURN for the project shown above is:

		17.92%
		11.63%
		8.27%
		12.81%
		9.33%

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The PROFITABILITY INDEX for the project shown above is:

		0.75
		0.89
		1.60
		2.15
		1.03

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