46.) A company is considering a new inventory system that will cost $120,000. The system...

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Finance

46.)

A company is considering a new inventory system that will cost $120,000. The system is expected to generate positive cash flows over the next four years in the amounts of $35,000 in year 1, $55,000 in year 2, $65,000 in year 3, and $70,000 in year 4. The firms required rate of return is 9%. What is the payback period of this project?

1.95 years

2.46 years

2.99 years

3.10 years

47.)

Based on the information from Question 46. What is the net present value (NPV) of the project?

$39,830.29

$45,392.16

$58,184.18

$65,268.43

48.)

Based on the information from Question 46, what is the internal rate of return (IRR) of this project?

20.32%

35.22%

28.72%

27.13%

49.)

Based on the information from Question 46, what is the modified internal rate of return (MIRR) of this project?

20.32%

35.22%

28.72%

27.13%

50.)

Based on the information from Question 46, what is the profitability index (PI) of this project?

1.63

1.52

1.48

1.54.

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