6 You have the following cash flows: FIND the IRR, NPV (using 8 %), and the...

6 You have the following cash flows: FIND the IRR, NPV (using 8 %), and the Profitability Index (Bang for your buck)

T0 = -1250 IRR = _______________%_

T1 = 350 NPV = __$______________

T2 = 450 PI = __$______________

T3 = 450

T4 = 550

Expert Solution

Answers:-

NPV = $221.37

Profitability Index = 1.18

IRR = 15.2%

IRR is the rate at which NPV is zero and it is calculated as below:-

jeff jeffy answered 1 year ago

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