Question: You are considering a product with an initial cash outlay of$80,000 and expected free cash flows of $20,000 at the end of the year for

You are considering a product with an initial cash outlay of$80,000 and expected free cash flows of $20,000 at the end of the year for 6years. The required rate of return for this project is 10%.
a) What is the projects payback period?
b) What is the project’s Net Present value (NPV)?
c) What is the project’s profitability index (PI)?
d) What is the project’s internal rate of Return (IRR)?

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