The CS Hightech is planning a new investment project which is expected to yield cash inflows of $335,000 per year in Years1 through 5, $266,000 per year in Years 6 through 9, and $218,000 in Years 10 through 15. This investment will cost the company $2,500,000 today (initial outlay). We assume that the firm's cost of capital is 8.5% 

Question 1: Draw a timeline to show the cash flows of the project. 

Question 2: Compute the project's payback period, net present value (NVP), profitability index (PI), internal rate of return (IRR), and modified internal rate of return (MIRR). 

Question 3: Discuss whether the project should be taken.

Answer rating: 100% (QA)

Sol a 0 Cash Inflows Investment 2500 Discount Factor 1 Present Value 85 ... View the full answer