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Capital project analysis

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Able Corporation has Project A with the following cash flows and a 8.7% cost of money: Numbers in parentheses are outflows. Both Year 0 and Year 3 cash flows are outflows.
Year 0 1 2 3 4 5 6
Cash flow $(312,000) $ 95,000 $120,000 $(260,000) $ 230,000 $260,000 $180,000

Please calculate the net present value ______________

Please calculate the profitability indexes (two decimals please)_________________

Please calculate the modified profitability index using the terminal value approach in the textbook (two decimals please)_______________________

Please calculate the internal rate of return (two decimals please)_____________________________

Please calculate the modified internal rate of return (two decimals please and per the book)________________________

Please calculate the payback period (two decimals please)________________________

Please calculate the present value payback period (two decimals please)______________________

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Solution Summary

This solution provides calculations of net present value, profitability index, probability, internal rate of return, present value payback, and payback period in Excel.