Question: Given the following cash flows, determine the net present value ( NPV ), profitability index ( PI ), internal rate of return ( IRR ),
-
Given the following cash flows, determine the net present value (NPV), profitability index (PI), internal rate of return (IRR), and payback for each of the following five projects (assume a discount rate of 10%):
| Project | C0 | C1 | C2 | C3 |
|---|---|---|---|---|
| A | -$100 | $ 0 | $ 0 | $145 |
| B | -$100 | $115 | $ 0 | $ 0 |
| C | -$100 | $230 | -$120 | $ 0 |
| D | -$ 45 | $ 20 | $ 20 | $ 20 |
| E | -$100 | $ 30 | $ 30 | $ 90 |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
