Fatima Ahmad is evaluating a new project for her firm. She has determined that the after-tax cash flows for the project will be $25,000; $22,000; $32,000; $19,000; and $8,000, respectively, for each of the Years 1 through 5.  The initial cash outlay will be $75,000. Find the Payback period, net present value, and profitability index if the cost of capital is 13% for this project.

Answer rating: 100% (QA)

initial cost 75000 Cash flow for two years 250002200047000 Third year cash flow 32000 Payb... View the full answer