Question: 9. Pate Company is evaluating a project requiring an initial capital expenditure of $806,250. The project has an estimated life of 4 years and no

9. Pate Company is evaluating a project requiring an initial capital expenditure of $806,250. The project has an estimated life of 4 years and no salvage value. The yearly estimated net income and net cash flow from the project is as follows Year Net Cash Flow/Income 0 1 2 3 4 (806,250) 575,00 502,000 409,500 350,500 The company's minimum desired rate of return (cost of capital) is 12% REQUIRED: Calculate the following: (A) Payback Period; (B) Accounting Rate of Return; (C) Present Value of future Cash Flows and NPV of the Project; (D) Internal Rate of Return; (E) Profitability Index.

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