Question: Show full working to earn full marks Question 2: A project has an initial cost of $61,000 expected net cash inflows of $24,000 per year

Show full working to earn full marks

Question 2: A project has an initial cost of $61,000 expected net cash inflows of

$24,000 per year for 3 years, and a cost of capital of 7%. Answer the following questions.

  1. Calculate the Normal Payback Period:

  1. Calculate the Discounted Payback Period: (15 points)

  1. Calculate the NPV:

Calculate the Profitability Index:

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