Problem:
You are considering a project with the initial cash outlay of $80,000 and expected cash flows of $22,400 at the end of each year for 6 years. The discount rate for this project is 10.4%.
Please answer the following question:
Question 1: What are the projects payback and discounted payback periods?
Question 2: What is the projects NPV?
Question 3: What is the projects PI?
Question 4: What is the projects IRR?
Note: Please show how to work it out.