Question: You are assessing an investment project being considered for implementation. The cash flows of the project are shown in the table below. Year cash outflow
You are assessing an investment project being considered for implementation. The cash flows of the project are shown in the table below.
| Year | cash outflow | Discount Factor |
|
|
|
| 0 | $ (500,000) | 1.0000 |
|
|
|
| 1 | 115,000 | 0.9174 |
|
|
|
| 2 | 135,000 | 0.8417 |
|
|
|
| 3 | 180,000 | 0.7722 |
|
|
|
| 4 | 120,000 | 0.7084 |
|
|
|
Required: Complete the table and compute,
The Discounted Payback Period
The Net Present Value
The Profitability Index
Would the project be accepted for implementation? State Reason
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