Identify the most profitable project calculate the internal


As the Chief Financial Officer of a management consulting company you are offered the following project that involve an initial capital expenditure followed by subsequent projected yearly cash inflows. Initial expenditure: 160000

Year Cash Flow

1 20000

2 35000

3 60000

Evaluate this project by calculating the followings:

a) Discounted payback period using a 5.4% discount rate and 1.6% discount rate.

b) Net present value using a 5.4% and a 1.6% discount rate

c) Identify the most profitable project

d) Calculate the internal rate of return.

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Financial Management: Identify the most profitable project calculate the internal
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