Consider the following projects with their respective cash flows:YearProject IProject JProject KInitial Outlay-$15,000-$10,000-$20,000Year 1$3,000$4,000$5,000Year 2$4,000$4,000$6,000Year...

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Accounting

Consider the following projects with their respective cash flows:

Year

Project I

Project J

Project K

Initial Outlay

-$15,000

-$10,000

-$20,000

Year 1

$3,000

$4,000

$5,000

Year 2

$4,000

$4,000

$6,000

Year 3

$5,000

$4,000

$7,000

Year 4

$6,000

$4,000

$8,000

Required:

  1. Compute the payback period for each project.
  2. Determine the discounted payback period at a discount rate of 10%.
  3. Calculate the NPV for each project at a discount rate of 10%.
  4. Find the IRR for each project.
Evaluate the profitability index for each project.

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