**Use cash flow projections below in answering question #'s 1-3**
The following two mutually-exclusive business opportunities
are currently under consideration by your firm, The Sharper
Investor. The accounting department has forecasted pro forma
cash flows for both projects accoding to the following table:
(each project is to be funded to require a discount rate of 15%)
Year Cash Flow (A) Cash Flow (B) _
0 -$525,000 -$60,000
1 30,000 30,000
2 75,000 15,000
3 75,000 9,000
4 1,125,000 3,000
1. Discounted payback of Project A (above) equals:
2. What is Project A's Internal Rate of Return (SHOW ALL WORK)?
3. The Profitability Index for Project B equals?
Can you show me the answer with all the working, thank you.
1. Discounted payback of Project A (above) equals: Discounted payback project is after 1st year cash flow how much time... View the full answer