Palmer Inc. has an investment project that has annual cash flows of $8800 $ 90

Palmer Inc. has an investment project that has annual cash flows of $8800 $ 9000 $10000 $8700 and $9500 in next five years and a
discount rate of 10%.

a)Find out the IRR payback period Discounted Payback period NPV and profitability index if the initial cost is
$28000. Should the company consider investing in the project?

b)Find out the IRR payback period Discounted Payback period NPV and profitability index if the initial cost is
$35000. Should the company consider investing in the project?

c)Complete the following table with information from (a) and (b) and discuss which project you would choose.

If initial cost is $28000

If initial cost is $35000

Payback Period

Discounted Payback

NPV (Net Present Value)

PI (Profitability Index)

IRR