Question: Consider the following cash flow and calculate without using excel. 1. Payback period 2. Discounted Payback period 3. NPV 4. IRR and 5. Profitability index.

Consider the following cash flow and calculate without using excel.

1. Payback period 2. Discounted Payback period 3. NPV 4. IRR and 5. Profitability index. Rank the projects based on different capital budgeting techniques and show which one is worth to accept. Consider discount rate to be 9%. How your result would change if discount rate is changed to 7%?

0	-550000	-550000
1	45000	65000
2	65000	-85000
3	80000	45000
4	98000	550000
5	-50000	55000
6	-180000	45000
7	190000	-150000
8	195000	200000
9	250000	100000
10	245000	100000

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