Calculate pb and pi for the project

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Problem 1: Calculate PB, DPB, NPV, IRR and PI for the following project: net cash flows for this 5 year project are: $250,000, $300,000, $400,000, $500,000 and $200,000 with an initial investment of $425,000. You use a discount rate of 12% and your tax rate is 30%. The machine will be sold in year 5 for $37,500 and it is 5-year property. The sale of the machine has not been calculated in year 5's net cash flow of $200,000.

Reference no: EM132790174

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