A project has the following total (or net) cash flows.
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Year Total (or net) cash flow
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1 $20,000
2 30,000
3 50,000
4 60,000
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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.
Formulae
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