Find what is net present value of simple one-period project

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Reference no: EM132596913

Calculate the following:

Question 1: What is the payback period of a project with average annual cash outflows of $8,000, average annual cash inflows of $10,000, and an initial investment of $13,000?

Question 2: What is the net present value of a simple one-period project with an initial investment of $12,000 and an expected net cash flow in one year of $15,000, assuming a discount rate of 8 percent?

Question 3: What is the net present value of a project with a $40,000 initial investment and expected net cash flows of $15,000, $20,000, and $25,000 in each of the next three years, assuming an appropriate discount rate of 10 percent?

a. What is the internal rate of return for the project?

b. What is the profitability index for the project?

c. What is the payback period for the project?

d. What is the modified internal rate of return for the project if the finance rate is 10 percent and the reinvestment rate is 13 percent?

Reference no: EM132596913

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