You are evaluating an investment project with the following cash flows:
|
Period
|
Cash Flow
|
|
0
|
-$100,000
|
|
1
|
35,000
|
|
2
|
35,000
|
|
3
|
35,000
|
|
4
|
35,000
|
Calculate the following:
a. Payback period
b. Discounted payback period, assuming a 10% cost of capital
c. Discounted payback period, assuming a 16% cost of capital
d. Net present value, assuming a 10% cost of capital
e. Net present value, assuming a 16% cost of capital
f. Profitability index, assuming a 10% cost of capital
g. Profitability index, assuming a 16% cost of capital
h. Internal rate of return i. Modified internal rate of return, assuming reinvestment at 0% j. Modified internal rate of return, assuming reinvestment at 10%.