What is the discounted payback period of the project

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Reference no: EM131991143

A project has a cost of $60,000, and annual cash flows as shown.

Year 0: -60,000 Year 1: 18,500 Year 2: 22,000 Year 3: 33,500 Year 4: 55,000

a. Assuming a required return of 10%, what is the NPV of the project? Should you accept it?

b. Assuming a required return of 10%, what is the IRR of the project? Should you accept it?

c. What is the payback period of the project? If the required payback period is 3 years, should you accept it?

d. Assuming a required return of 10%, what is the discounted payback period of the project? If the required payback period is 3 years, should you accept it?

e. Assuming a required return of 10%, what is the profitability index of the project? Should you accept it?

Reference no: EM131991143

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