Telesis Corp is considering a project that has the following cash flows:
Year 
Cash Flow 

0 
$1,000 

1 
400 

2 
300 

3 
500 

4 
400 
The company’s weighted average cost of capital (WACC) is 10%. What are the project’s payback period (Payback), internal rate of return (IRR), net present value (NPV), and profitability index (PI)?
Payback = 3.5, IRR = 10.22%, NPV = $1260, PI=1.26
Payback = 2.6, IRR = 21.22%, NPV = $349, PI=1.35
Payback = 2.6, IRR = 21.22%, NPV = $289, PI=1.29
Payback = 3.6, IRR = 20.22%, NPV = $318, PI=1.32
Payback = 2.6, IRR = 21.22%, NPV = $260, PI=1.26
Answer :
Payback = 2.6, IRR = 21.22%, NPV = $260, PI=1.26
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