HOMEWORK #1 Question 1. A project manager is working on justification of a project. Since very little information is known about the project, some rough estimates have been gathered. Following table is prepared to show the cash inflow and outflow for the following years: Year Cash In Flow Cash Out Flow 700 1 500 190 2 700 200 300 150 400 100 What is the payback period for this project? Question 2. If the required rate of return is 10%, is the project mentioned above acceptable? Use NPV. Question 3. Calculate profitability index to determine if the project acceptable. Use 10% interest rate. NOTE: Show the calculations for the question 1,2,and 3 and fill in the table below. Cash In Cash Out Net cash Year Cum Cash Flow Discounted Cash Flow Flow Flow flow 700 500 190 2 700 200 300 150 4 400 100 Discounted Cash Flow (NPV) Net Cash In Flow Net Cash Out Flow Profitability Index Payback Period

A project has the following cashflows. The project's cumulative cashflow turns positive between year 4 and 5, to be precise it is 4.22. Your further analysis indicates that you are too conservative about the cash flows for Year 1 and 2. You expect both cash flows to be at least $1000 higher, if not more :) How will this affect your calculation of the precise time when the cumulative cashflow turns positive? t 0 ON 35 67 2 4 $ Cash flow (250,000) 41,000 48,000 63,000 79,000 88,000 64,000 41,000 Changes. The project's cumulative cashflow turns positive a bit earlier. Changes. The project's cumulative cashflow now turns positive a lot later. Changes. The project's cumulative cashflow now turns positive a bit later. No change. The project's cumulative cashflow still turns positive between year 4 and 5, to be precise it is 4.22.

Hi could you please help me to solve these questions? Thanks

Please solve step by step for clarity, thank you!