The MaxwellCorporation is evaluating the following project. The CFO has determined that the appropriate risk-adjusted discount rate is 7%.

Year Cash Flow

0 -15,000,000

1 3,950,000

2 3,500,000

3 3,800,000

4 -1,000,000

5 3,500,000

6 3,000,000

7 -1,000,000

8 2,000,000

9 2,000,000

Please answer the questions and correct my answers.

1. Calculate the net present value for the project. (Round to 2 decimals)

NPV on excel = 197,454 (wrong)

2. Calculate the profitability index for the project. (Round to 3 decimals)

Formula- (NPV/Initial investment)/ Initial investment = 1.014 (unsure)

3. Calculate the payback period for the project. (Round to 3 decimals) =

4. Calculate the discounted payback period for the project. (Round to 3 decimals) = -4.06 wrong