Project E has the following cash flows: remember the year zero number is negative
Year Year Year Year Year
Cash flows $ $ $ $ $
Using a cost of capital, what is the net present value of this project? Assume that Project E is mutually exclusive to Project B above. Using net present value to make the decision should this project be accepted over Project B
Using a cost of capital, what is the profitability index for this project? Assume that Project E is mutually exclusive to Project B above. Using the profitability decision model to make the decision should this project be accepted over Project B
Using a cost of capital, what is the internal rate of return for this project? Assume that Project E is mutually exclusive to Project B above. Using the internal rate of return decision model to make the decision should this project be accepted over Project B
Using a cost of capital, what is the payback period for this project? Assume that Project E is mutually exclusive to Project B above. Using the payback decision model to make the decision should this project be accepted over Project B
Using a cost of capital, what is the present value payback period for this project? Assume that Project E is mutually exclusive to Project B above. Using the present value payback decision model to make the decision should this project be accepted over Project B
Which project should be selected?