Molin Inc. is considering to a project that will have the following series of cash flow from assets (in $ million): Year Cash flow 0 -1,580.92 1 453 2 749 3 935 The required return for the project is 6%. Year Cash flow 0 -1,580.92 1 453 2 749 3 935 1. The required return for the project is 6%. 2.  What is the project's profitability index? 3. What is the internal rate of return (IRR) for this project?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Molin Inc. is considering to a project that will have the following series of cash flow from assets (in $ million):

Year Cash flow
0 -1,580.92
1 453
2 749
3 935

The required return for the project is 6%.

Year Cash flow
0 -1,580.92
1 453
2 749
3 935

1. The required return for the project is 6%.

2.  What is the project's profitability index?

3. What is the internal rate of return (IRR) for this project?

 
 

 

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