Compute the payback period and discounted payback period

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1. For the following project compute the Payback Period, Discounted Payback Period, Net Present Value, Profitability Index, Internal Rate of Return and the Modified Internal Rate of Return. The appropriate discount rate is 11%.

Year Cash Flow

0 -$11,000

1 $5,000

2 $3,000

3 $8,000

2. For the following project compute the Internal Rate of Returns (there are more than one) and the Modified Internal Rate of Return. The appropriate discount rate is 10%.

Year Cash Flow

0 -$11,000

1 $5,000

2 $3,000

3 $8,000

4 -$3,000

Reference no: EM131902240

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