A project has the following total (or net) cash flows.
Year Total (or net) cash flow
The required rate of return on the project is 15 percent. The initial investment (or initial cost or initial outlay) of the project is $80,000.
a) Find the net present value (NPV) of the project.
b) Find the profitability index (PI) of the project.
c) Calculate the modified internal rate of return (MIRR) of the project.
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