You are considering an investment that costs $12,000 today and will generate cash flows over the next three years of $3,000, $7,000, and $6,000. Your firm has a required rate of return of 9%.
a. Calculate the NPV.
b. Calculate the IRR.
c. Calculate the Profitability Index.
d. Calculate the Payback Period.
e. Would you consider this to be a good investment?