In: Finance
SHOW YOUR WORK AND EXPLAIN PLEASE!
Complete problems: NPV, IRR, MIRR, Profitability Index, Payback, Discounted Payback A project has an initial cost of $60,000, expected net cash inflows of $10,000 per year for 8 years, and a cost of capital of 12%. Show your work. a. What is the project’s NPV? (Hint: Begin by constructing a timeline). b. What is the project’s IRR? c. What is the project’s MIRR? d. What is the project’s PI? e. What is the project’s payback period? f. What is the project’s discounted payback period?
Solution given with explanation for each answer
Excel function has been used for IRR and MIRR working