Calculate the payback period and profitability index

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Reference no: EM132040412

You are considering an investment that costs $12,000 today and will generate cash flows over the next three years of $3,000, $7,000, and $6,000. Your firm has a required rate of return of 9%.

a. Calculate the NPV.

b. Calculate the IRR.

c. Calculate the Profitability Index.

d. Calculate the Payback Period.

e. Would you consider this to be a good investment?

Reference no: EM132040412

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