Able corporation has project a with the following cash


Please use the following information to answer the remaining problems:

Able Corporation has Project A with the following cash flows and a 7.6% cost of money: Numbers in parentheses are outflows. Both Year 0 and Year 3 cash flows are outflows.

Year 0 1 2 3 4 5 6

Cash flow $(351,000)  $ 95,000 $180,000   $(280,000) $ 280,000 $260,000 $180,000

1. Please calculate the net present value ______________

2. Please calculate the profitability indexes (two decimals please)_________________

3. Please calculate the modified profitability index using the terminal value approach in the textbook (two decimals please) _______________________

4. Please calculate the internal rate of return (two decimals please)_____________________________

5. Please calculate the modified internal rate of return (two decimals please and per the book)________________________

6. Please calculate the payback period (two decimals please)________________________

7. Please calculate the present value payback period (two decimals please)______________________

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Finance Basics: Able corporation has project a with the following cash
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