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Homework answers / question archive / You have identified two investment options and the associated net cash flows
You have identified two investment options and the associated net cash flows. Assuming a 7.00 percent discount rate, calculate the requested value. Record all values in accordance with the reporting protocols used in class.
Year. Option #1. option #2
0 ($125,000) ($125,000)
1 17500 31000
2 22500 31000
3 32500 31000
4 37500 31000
5 42500 31000
SRR for option #2
Calculate NPV for option #2
calculate the profitability index for option #2
Calculate the discounted payback period for option #2
NPV for Option #2 is $2,106.12
Profitability Index for Option #2 is 1.02
Discounted Payback Period for Option #2 is 4.90 years.