Calculate the traditional payback period, IRR, NPV, and PVI (present value index) for the project with the following cash flows. The opportunity cost of capital for the project is 14%.
|
Year
|
Cash Flows
|
|
0
|
-1,500,000
|
|
1
|
400,000
|
|
2
|
600,000
|
|
3
|
550,000
|
|
4
|
450,000
|
|
5
|
200,000
|
*For full credit please copy and paste any Excel tables you used to arrive at your answer.
Clearly label each final answer (" Payback = XX.XX (to 2 decimal places), IRR = XX.XX% (% to two decimal places), NPV = XX.XX (to the nearest penny), PVI = XX.XX (to 2 decimal places) at the top of the answer box. For full credit paste all Excel tables and work below the final answers.