# Capital World Inc. is considering a project that has the following cash flow and WACC is 10.25%. year 0 1

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## Question:

Capital World Inc. is considering a project that has the following cash flow and WACC is 10.25%.

year | 0 | 1 | 2 | 3 | 4 | ||||

Cash flows | ($1,400) | $450 | $475 | 500% | $500 | ||||

a. Calculate payback period? | |||||||||

b. Calculate discounted payback period? | |||||||||

c. Calculate NPV? | |||||||||

d. Calculate IRR? | |||||||||

e. Calculate MIRR? | |||||||||

f. Calculate PI? | Show work |

**Related Book For**

## Foundations of Finance The Logic and Practice of Financial Management

ISBN: 978-0132994873

8th edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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