Calculating the net present value


Able Corporation has Project A with the following cash flows and a 8.7% 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    $(312,000)  $ 95,000    $120,000    $(260,000)   $ 230,000    $260,000    $180,000

Please calculate the net present value _______

Please calculate the profitability indexes (two decimals please)______

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

Please calculate the internal rate of return (two decimals please)______

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

Please calculate the payback period (two decimals please)__________

Please calculate the present value payback period (two decimals please)_____

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Finance Basics: Calculating the net present value
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