Calculate the net present value assuming a cost of capital

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You are evaluating an investment project of Finfine Project, with the following cash flows:

Period Cash Flow

0 -$100,000

1 35,027

2 35,027

3 35,027

4 35,027

Question 1: Calculate the following questions independently and justify each result:

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%

Reference no: EM132578999

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