Calculate the profitability indexes

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Reference no: EM132038165

Able Corporation has Project A with the following cash flows and a 7.8% cost of money: Numbers in parentheses are outflows. Both Year 0 and Year 3 cash flows are outflows. Year 0 1 2 3 4 5 6 Cash flow $(351,000) $ 95,000 $180,000 $(300,000) $ 280,000 $260,000 $180,000

Please calculate the net present value ______________

Please calculate the profitability indexes (two decimals please)_________________

Please calculate the modified profitability index using the terminal value approach in the textbook (two decimals please)_______________________

Please calculate the internal rate of return (two decimals please)____________________________

Please calculate the modified internal rate of return (two decimals please and per the book)_______________

Please calculate the payback period (two decimals please)_______________________

Please calculate the present value payback period (two decimals please)______________________

Reference no: EM132038165

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