Assume NCO = 1,200,000
Cash flows from Year 1 to Year 5 = $300,000
Earnings Per Share = $5.00
DPR = 45%
Price of Stock = $42
Corporate Tax Rate = 25%
Bond Price = $1080
CR = 5%
10 year bond
Face Value = $1000
Debt is 40% and equity is 60% of the capital structure
Determine Payback, Net Present Value (NPV) , Internal Rate of Return( IRR) , Profibility Index (PI)