Nova Devices, Inc. is evaluating a project with the following cash flows.

Year Cash Flows

0 ($150,000)

1 $ 30,000

2 $ 70,000

3 $ 90,000 Calculate the IRR of this project.

33% 11% 28% 18%

. Vanguard Investor Advisory, Inc. considers a project with the following cash flows.

After-Tax After-Tax

Accounting Cash Flow

Year Profits from Operations

1 $799 $ 750

2 $150 $1,000

3 $200 $1,200

Initial investment = $1,500. Terminal cash flow = 0 Compute its profitability index if the discount rate is 6%.

1.81 0.62 1.74 15.8