2024 – 1 Given the following cash flows for Project M in various years Initial Investment C 0

1. Given the following cash flows for Project M in various years:

Initial Investment C₀ = -$10,000,

Cash Inflows (Year 1 to 4): C₁ = +$2,000, C₂ = +$3,000, C₃ = +$5,000, C₄ = +$6,000.

What is the Payback Period of the project (in years)?     

 

2. Given the following cash flows for Project M in various years:

Initial Investment C₀ = -$10,000,

Cash Inflows (Year 1 to 4): C₁ = +$2,000, C₂ = +$3,000, C₃ = +$5,000, C₄ = +$6,000.

What is the Discounted Payback Period of the project (in years)?  

Use a discount rate of 10%.     

 

3. Given the following cash flows for Project M in various years:

Initial Investment C₀ = -$10,000,

Cash Inflows (Year 1 to 4): C₁ = +$2,000, C₂ = +$3,000, C₃ = +$5,000, C₄ = +$6,000.

Calculate the NPV of the project using a 10% discount rate.  

Give your answer in round $. Do not include $ sign or comma in your answer.      

 

4. Given the following cash flows for Project M in various years:

Initial Investment C₀ = -$10,000,

Cash Inflows (Year 1 to 4): C₁ = +$2,000, C₂ = +$3,000, C₃ = +$5,000, C₄ = +$6,000.

Calculate the Profitability Index for the project at the discount rate of 10%.  

Give your answer to 2 decimals. 

 

5. Given the following cash flows for Project M in various years:

Initial Investment C₀ = -10,000,

Cash Inflows (Year 1 to 4): C₁ = +2,000, C₂ = +3,000, C₃ = +5,000, C₄ = +6,000.                           Calculate the IRR for the project.   

Do not enter % in your answer. Give your answer up to 2 decimals.