Compute the npv-compute the irr

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1. The cash flows for a 4-year investment in Bolivia are given below. The discount rate is 12 percent. Please watch: NPV and IRR using BAiiPlus (5:19), MIRR using BAiiPlus (5:55), Payback Period (2:40) and Discounted Payback Period (5:19), then answer the following questions using the cash flows below:

Time 0 1 2 3 4

Cash Flow -5,000 4,000 2,000 1,000 4,000

a. Compute the NPV

b. Compute the IRR

c. Compute the modified IRR using a 12 percent discount rate

d. Compute the payback period. (For additional help on Payback Period, use THIS link)

e. Compute the discounted payback using a 12 percent discount rate

f. Compute the profitability index using a 12 percent discount rate

Reference no: EM132499665

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