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A company is considering a project that has the following cash flow data. The firm’s WACC...

A company is considering a project that has the following cash flow data. The firm’s WACC is 11%.

Year

0    

1  

2  

3  

Cash flows

-$1,000

$300

$400

$600

a) What is the project’s payback period?

b) What is the project’s discounted payback period?

c) What is the project’s NPV?

d) What is the project’s Profitability Index?

e) Compute the Internal Rate of Return.

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