Andrew Inc. whose cost of capital is 10% is considering a projects X, the details of which are:
Year Project X
Initial Investment 0 $ 1,500,000
Cash Inflows 1 $ 250,000
2 $ 350,000
3 $ 400,000
4 $ 500,000
5 $ 650,000
Calculate:
a.) Net Present Value
b.) Profitability Index,
c.) Internal Rate of Return
d.) Payback Period
e.) Discounted Payback Period