Question: please help to solve it as soon as possible 2. For the Asset Expansion project a company has the following cash flows: Year Q Year

please help to solve it as soon as possible

2. For the Asset Expansion project a company has the following cash flows: Year Q Year 1 $10,000 Year 2 Year 3 Year 4 $12,000 $15,000 $10,000 Year 5 $7,000 -$40,000 Requirement: Q1. Using the Payback Period Method, what should be the payback period of this project? Is this project favorable for investment if the management of the company has set a maximum PBP of 3.5 years for this project? (5 marks) Q2. Using NPV method, what is the NPV of this project is the company has determined that the appropriate discount rate for this project is 13% ? With the NPV found, is the project favorable to invest or not? (5 marks) Q3. Using Profitability Index (PI) method, what is the Pl of this project? With the PI found, is the project favorable to invest or not? (5 marks) Q4. In using a combination of all the 3 methods above, is the project favorable to be selected or not? Why? (5 marks) Noted: MACRS Table Recovery Property Class Year 3-Year 5-Year 7-Year 33.33% 20.00% 14.29% 1 2 44.45 32.00 24.49 14.81 19.20 17.49 7.41 11.52 12.49 11.52 8.93 5.76 8.92 8.93 4.46 1 2345678 4 7

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