Required: a) What is the net present value (NPV) of this project?
NPV = $__________________ Should the firm invest based on NPV? (1=yes 2=no) ________________ b) What is the payback period for this project?
payback period = _________________ years c) What is the modified payback period for this project?
-between 1 and 2 years
-between 2 and 3 years
-between 3 and 4 years d) What is the accounting rate of return (ARR) for this project?
To compute ARR first compute: annual depreciation=$_____________
annual income=$______________
average investment=$____________
ARR = ______________ % (enter say 10% as 10 not as 0.1 and not as 10%)