Question: Use the following information to answer question #20 ~ #22. Three-year project with Initial investment: $1,000 Interest rate: 5% The 1 st year cash flow:

Use the following information to answer question #20 ~ #22.

Three-year project with Initial investment: $1,000 Interest rate: 5%

The 1st year cash flow: $400 The 2nd year cash flow: $1,200

20. Which of the followings is NPV of this two-year project?

21. What is the payback period for this project?

22. The profitability index (PI) will be approximately calculated as _____.

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