Year cash flow

1 8000

2 0

3 8000

a. What is the net present value of a project that has an initial cash outflow of $10,000 and the following cash inflows? The required return is 11%.

b. What is the profitability index of a project that has an initial cash outflow of $10,000 and the following cash inflows? The required rate of return is 11%

c. What is the Modified IRR of a project that has an initial cash outflow of $10,000 and the following cash inflows? The required rate of return is 11%.

question 2

year cash

1 1000

2 2000

3 3000

4 4000

a. What is the present value of the following cash flows if the opportunity cost is 10%?

b. What is the future value for the following cash flows at the end of year 4? Given an opportunity cost of 10%

c. What is the future value of the following cash flows at the end of 10 years, assuming an opportunity cost of 10%?