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Year Cash Inflows 0 ($500,000) 1 $150,000 2 $200,000 3 $250,000 4 $300,000 Requirements: Calculate the payback period. Determine the accounting rate of return. Compute

Year

Cash Inflows

0

($500,000)

1

$150,000

2

$200,000

3

$250,000

4

$300,000

  • Requirements:
    • Calculate the payback period.
    • Determine the accounting rate of return.
    • Compute the net present value (NPV) at 12% discount rate.
    • Find the profitability index.

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