Al-Pinar Manufacture facing a new investment opportunity, Al-Pinar's manager will accept this investment only if its maximum payback is 4 years. the firm will pay a 5% coupon interest rate to finance the machine required for the new investment cost $6,000,000 and it is expected to provide after-tax operating cash inflows of
$1,800,000 in year 1,
$1,900,000 in year 2,
$700,000 in year 3,
and $1,800,000 in year 4?
Group A: Calculate the Payback period
Group A: Based on your answer in part (1) should the firm accept or reject the new investment opportunity?
Group A: Discounted Payback Period.
Group B: Based on your finding in part (3) should the firm accept or reject the new investment opportunity.
Group A: Calculate Net Present Value.
Group C: Based on your finding in part (5) should the firm accept or reject the new investment opportunity.
Group A: Calculate the Profitability Index.
Group D: Based on your finding in part (7) should the firm accept or reject the new investment opportunity
Group A: calculate The Internal Rate of Return
Group E: Based on your finding in part (9) should the firm accept or reject the new investment opportunity
Group A: complete the statement; Internal Rate of Return makes NPV=
