Use the information to solve 1-7. A proposed project requiring an initial outlay of $230,000 will provide the following year-end cash flows (remember that the initial outlay and year 3 are negative cash flows)

Year123456

Cash Flows$140,000$171,000$-440,000$259,000$321,000$265,000

1.Using a 6.6% required return, please compute the net present value______________. Is the investment desirable?

2.Using a 6.6% required return, please compute the profitability index for the above investment__________________.

3.Using a 6.6% required return, please compute the modified profitability index for the above investment__________________.

4.Please compute the internal rate of return for the above investment __________________.

5.Using a 6.6% required return, please compute the modified internal rate of return for the above investment ( do not use the preprogramed MIRR function in Excel which brings the inflows and outflows to present values). _________________

6.Please compute the payback period for the above investment__________________.

7.Using a 6.6% required return, please compute the present value payback period for the above investment__________________.