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You are analyzing a project and have prepared the following data:
Year Cash flow
0 -$169,000
1 $ 46,200
2 $ 87,300
3 $ 41,000
4 $ 39,000
Required payback period 2.5 years
Required AAR 7.25 percent
Required return 8.50 percent
C-1 What is the payback period? Should you accept the project?
C-2 What is the profitability index of the project? Should you accept the project?
C-3 What is the NPV of the project?
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