You are given the expected positive cash flows for two new passenger rail connection between RoadRiver (RR) and TrainTracks (TT), Alberta. From Table 1:

	Project RR		Project TT
Year	Cash flows		Cash flows
0	(175,000)		(280,000)
1	65,000		100,000
2	85,000		140,000
3	75,000		120,000
4	55,000		80,000

Calculate the payback, NPV, IRR and Profitability Index for each project. The Cost of capital is 11%.

Note: Once you click in the table below, you can drag the dotted triangle at the bottom right corner of the text editor window to make it bigger.

Payback:

	Project RR		Project TT
Year	Cash flows		Cash flows
0	(175,000)		(280,000)
1	65,000		100,000
2	85,000		140,000
3	75,000		120,000
4	55,000		80,000
	Payback =		Payback =

Net Present Value:

	Project RR		Project TT
Year	Cash flows		Cash flows
0	(175,000)		(280,000)
1	65,000		100,000
2	85,000		140,000
3	75,000		120,000
4	55,000		80,000
	NPV =		NPV =

Internal Rate of Return

Project RR = Project TT =

Profitability Index

Project RR = Project TT =