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%