Compute Payback Period

Compute NPV

Compute discount payback period

compute profitability index

state what the IRR is

Joe is looking to pick up part time work. The local pizza place is hiring a delivery person, but you need a reliable car. Joe decides to go all in and buya tac and do delivery on the side: He estimates the car to be about $25,000 (have you seen prices recently... man). Adetitionally, he anticipates making $10.000 per year in income in year 1, with each year rising 5%. Additionally, he anticipates, his cash flow will be roughly $7,500 per year in year 1, with each year also rising 5% He will end the delivery "lobr" in 4 years. He also had a finance class with Professor Honer. He knows the historical rate of return is (896), so he wants to beat it and make his rate of return 9% Please do the following 1. Compute Payback Period (show work) 1 25pts 2. Compute NPV (show work) - 1.25pts 3. Compute Discount Payback Period (1 pts) 4. Compute Profitability Index (1 pt) 3. State in a sentence what the IRR is - 5 pts Joe is looking to pick up part time work. The local pizza place is hiring a delivery person, but you need a reliable car. Joe decides to go all ini and buy a car and do dellvery on the side: He estimates the car to be about $25,000 (have you seen prices recently.. man). Adetitionally, he anticipates making $10.000 per year in income in year 1. with each year rising 5%. Additionally, he anticipates, his cash flow will be roughly $7,500 per year in year 1, with each year also rising 5%. He will end the delivery "job" in 4 years. He also had a finance class with Professor Honer. He knows the historical rate of return is (8%), so he wants to beat it and make his rate of return 9% Please do the following 1. Compute Payback Period (show work) 1 25pts 2. Compute NPV (show work) - 1.25pts 3. Compute Discount Payback Period (1 pts) 4. Compute Profitability Index (1 pt) 3. State in a sentence what the IRR is 5 pts