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You are analyzing a project and have prepared the following data: Year...

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Finance

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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