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3.Find the (a.) Present Value (PV) and (b.) Future...

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3.Find the (a.) Present Value (PV) and (b.) Future Value (FV) for the following cash flow streams, if the rate of return is 18%. (10 points) Year 1 0 Year 2 0 Year 3 0 Year 4 160,000 Year 5 0 Year 6 0 Year 7 0 Year 8 0 Using the above information in problem #3., calculate the (a.) Net Present Value (NPV), (b.) Internal Rate of Return (IRR), (c.) Profitability Index (PI) and (d.) the Payback Period for the cash flows. The initial investment for this cash flow stream is $80,000 (Year 0) and the Cost of Capital is 18%.

 

Paper#11931 | Written in 18-Jul-2015

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