What is the net present value of this project

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Reference no: EM133553869

Question: Project B has the following cash flows: (remember the year zero number is negative)

Year 0 Year 1 Year 2 Year 3 Year 4

Cash flows -$1,000,000 $800,000 $400,000 $300,000 $200,000

1. Using a 7% cost of capital, what is the net present value of this project? Should this project be accepted?

2. What is the profitability index for this project?

3. What is the internal rate of return for this project?

4. What is the payback period for this project?

5. Using a 7% cost of capital, what is the present value payback period for this project?

 

Reference no: EM133553869

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