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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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