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Tutorial   16141

You are analyzing a project and have prepared the following data: Year Cash flow 0 -$169,000 1 $ 46,200 2 $ 87,300 3 $ 41,000 4 $ ...

Question:

You are analyzing a project and have prepared the following data:

 

                        Year                 Cash flow

                           0                      -$169,000

                           1                   $  46,200

                           2                   $  87,300

                           3                   $  41,000

                           4                   $  39,000

        Required payback period      2.5 years

        Required return                8.50 percent

 

1.     Based on the profitability index of _____ for this project, you should _____ the project.

 

2.     Based on the internal rate of return of _____for this project, you should _____ the project.

 

3.     Based on the net present value of _____for this project, you should _____ the project.

 

4.     Based on the payback period of _____for this project, you should _____ the    project.