Able Corporation has a project with the following cash flows and a 5.8% cost of money: Numbers in parentheses are outflows. Both Year 0 and Year 3 cash flows are outflows.
|
Year |
0 |
1 |
2 |
3 |
4 |
5 |
6 |
|
Cash flow |
$(351,000) |
$ 95,000 |
$168,000 |
$(300,000) |
$ 280,000 |
$280,000 |
$268,000 |
- Calculate the net present value ______________
- Calculate the profitability indexes _________________
- Calculate the modified profitability index using the terminal value approach_______________________
- Calculate the internal rate of return _____________________________
- Calculate the modified internal rate of return ________________________
- Calculate the payback period ________________________
- Calculate the present value payback period ______________________
