Consider a project with the following cash flows -100, 230, and -134 at time 0,1

Question

Consider a project with the following cash flows -100, 230, and -134 at time 0,1, and 2, respectively.
Obtain the IRR(s) of the project.
Obtain the NPI( Net Profitability Index) of the project if the cost of capital is 10%.
Also obtain the PI(Profitability Index) of the project if the cost of capital is 10%. Consider a project with the following cash flows -100, 230, and -134 at time 0,1, and 2, respectively.
Obtain the IRR(s) of the project.
Obtain the NPI( Net Profitability Index) of the project if the cost of capital is 10%.
Also obtain the PI(Profitability Index) of the project if the cost of capital is 10%.
Obtain the IRR(s) of the project.
Obtain the NPI( Net Profitability Index) of the project if the cost of capital is 10%.
Also obtain the PI(Profitability Index) of the project if the cost of capital is 10%.

Explanation / Answer

year cashflows PRESENT VALUE @10% 0 -100 1 230 209.0909091 2 -134 -110.7438017 PRESENT VALUE OF CASH OUTFLOW -210.7438017 CASH INFLOW 230 IRR 9.14% year cashflows PRESENT VALUE @10% 0 -100 1 230 209.0909091 2 -134 -110.7438017 DISCOUNTED CASH INFLOW 98.34710744 CASH OUT FLOW 100 PROFITABILITY INDEX 0.983471074 NET PRESENT VALUE -1.652892562

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