Question

Risky Business is looking at a project with the following estimated cash​ flow:

Risky Business wants to know the payback​ period, NPV,​ IRR, MIRR, and PI of this project.

The appropriate discount rate for the project is 8​%.   If the cutoff period is 6 years for major​ projects, determine whether the management at Risky Business will accept or reject the project under the five different decision models.

Initial investment at start of project   13,500,000

Cash flow at end of year one   2,430,000  

Cash flow at end of years two through six   2,700,000    

Cash flow at end of years seven through nine     2,916,000

Cash flow at end of year ten 2,243,077

Answer 1