Able Corporation has a project with the following cash flows and a 5.8% cost of money: Numbers
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Question:
Able Corporation has a project with the following cash flows and a 5.8% cost of money: Numbers in parentheses are outflows. Both Year 0 and Year 3 cash flows are outflows.
Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
Cash flow | $(351,000) | $ 95,000 | $168,000 | $(300,000) | $ 280,000 | $280,000 | $268,000 |
- Calculate the net present value ______________
- Calculate the profitability indexes _________________
- Calculate the modified profitability index using the terminal value approach_______________________
- Calculate the internal rate of return _____________________________
- Calculate the modified internal rate of return ________________________
- Calculate the payback period ________________________
- Calculate the present value payback period ______________________
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
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