ABC Company is considering a project that has the following cash flow and WACC data.  What is the project's discounted payback? Note that the company uses its WACC for the required rate of return. WACC: 10.00%       Year 0 1 2 3 Cash flows -$950 $500 $500 $500

A project has the following cash flows set out below. What is the profitability index of this project if the relevant discount rate is 2 percent? Enter your final answer to two decimal places. Year Cash flow 0 -1,745 1 537 2 2,066 3 3,912

Please answer the following questions using the information below: NPV. Using a 10% required rate of return, calculate the NPV for this project. Should  it be accepted or rejected?  PI. Calculate the Profitability Index (PI) for this project. Should it be accepted or  rejected?   Consider the following cash flows:  Year 0 1 2 3 4 5 6  Cash Flow -$8,000 $3,000 $3,600 $2,700 $2,500 $2,100 $1,600  Payback. The company requires all projects to payback within 3 years. Calculate the payback period. Should it be accepted or rejected?  Discounted Payback. Calculate the discounted payback using a discount rate of 10%.  Should it be accepted or rejected? IRR. Calculate the IRR for this project. The company’s required rate of return is  10%. Should it be accepted or rejected?  NPV. Using a 10% required rate of return, calculate the NPV for this project. Should  it be accepted or rejected?  PI. Calculate the Profitability Index (PI) for this project. Should it be accepted or  rejected?…

The NPV and payback period What information does the payback period provide? Suppose ABC Telecom Inc.’s CFO is evaluating a project with the following cash inflows. She does not know the project’s initial cost; however, she does know that the project’s regular payback period is 2.5 years. Year Cash Flow Year 1 $350,000 Year 2 $500,000 Year 3 $500,000 Year 4 $400,000   If the project’s weighted average cost of capital (WACC) is 10%, what is its NPV? $280,268   $224,214   $252,241   $322,308     Which of the following statements indicate a disadvantage of using the discounted payback period for capital budgeting decisions? Check all that apply. The discounted payback period does not take the project’s entire life into account.   The discounted payback period is calculated using net income instead of cash flows.   The discounted payback period does not take the time value of money into account.