Calculate the payback period for this project calculate the

Question

Net Present Value

     0 1      2       3       4      5

     |         |         |         |         |         |

-750     200    100    300    400    200

Discount Rate = 7%

a. Calculate the NPV.

b. Calculate the IRR.

c. Should the project be accepted?Explain your answer by discussingNPV and IRR.

d. Circle the correct answer.When calculating NPV, The HIGHER/LOWER the discount rate,the higher the NPV.

e. Calculate the Payback Period for this Project.

f. Calculate the Profitability Index for this project.

g. Circle the correct answer.In general, the payback period of a project should be Greater/Less than the discounted payback period for that prject.