Evaluating project with the cash flows

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Reference no: EM131958073

1) The Taxi Co. is evaluating a project with the following cash flows:

Year : Cash Flow

0: -20,400

1: 6100

2: 5200

3: 7950

4: 5400

5: -3700

Should this project be accepted based on the PI if the discount rate is 8 percent?

2) A firm evaluates all of its projects by applying the IRR rule. If the required return is 18 percent, should the firm accept the following project?

Year : Cash Flow

0 : -$105,600

1 : $29,500

2 : $34,200

3 : $6,750

4 : $15,320

5 : $25,670

3) Consider the following cash flows. If the discount rate is 12 percent, should we accept this project based on the MIRR rule?

Year : Cash Flow

0: -13,024

1: 17,172

2: -36,420

3: 34,200

4: -15,000

5: 8,500

6: 11,300

7: -6820

Please show steps in financial calculator form.

Reference no: EM131958073

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