Calculate the payback period for each project

Reference no: EM132207824

Question: Consider the following cash flows from different projects and assume the cost of capital is 12%:

n	A	B	C	D
0	-$3500	-$5000	-$7500	-$4000
1	800	2000	2000	5000
2	800	1500	2000	3000
3	800	1500	2000	-2500
4	800	500	4000	-1000
5	800	500	5000	1000
6	800	1500		2000
7	800			3000
8	800

a) Calculate the payback period for each project.

b) Determine whether it is meaningful to calculate a payback period for the project D.

c) Calculate the discounted payback period for each project.

d) Calculate the NPV of each project.

e) Calculate Profitability Index of each project.

f) calculate the IRR for each prject

Reference no: EM132207824

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