A proposed project requiring an initial outlay of $340,000 will provide the following year-end cash flows (remember that the initial outlay and year 3 are negative cash flows)

1. Using a 6% required return, please compute the net present value______________. Is the investment desirable?
2. Using a 6% required return, please compute the profitability index for the above investment__________________.
3. Using a 6% required return, please compute the modified profitability index for the above investment__________________.
4. Please compute the internal rate of return for the above investment __________________.
5. Using a 6% required return, please compute the modified internal rate of return for the above investment (using the method described in the text

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3 4 Year 5 -S440,000 Cash flows $140,000 $211,000 $195,000 S321,000 $315,000