Answer Happy

Grand Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $225,000 in year two. $150,000 in year three, and $180,000 in year four. Grand's required rate of return is 8%. For all questions enter a number with 2 decimals. a. The payback period of this project is years. b. The discounted payback period of this project is years. C. The net present value of this project is $ d. The profitability index of this project is e. The internal rate of return of this project is %. 1. The modified internal rate of return of this project assuming the reinvestment rate of 8% is %.