The initial investment in your project today is $600,000. Th…

The initial investment in your project today is $600,000. The present value of future cash flows from your project is $700,000.     A. (5 points)What is the net present value (NPV) of this investment opportunity, and should the investor take the deal?     B. (5 points)Compute the profitability index of this investment opportunity.    

The cash flows for project A are as follows.   0 1 Y…

The cash flows for project A are as follows.   0 1 Year 2 Year 3 Year Cash Flow -1,000 600 200 1,500 The required rate return is 10%.   A. (5 points)       Calculate the payback period.   B. (5 points)     Compute NPV at 10% discount rate.   C. (5 points)      Compute IRR.   D. (5 points)     Determine whether you accept the project or not. You must show NPV and IRR rules you use for your answer.   F. (6 points)    Draw a NPV graph for this project.     You must identify the following items: NPV @ 0% discount rate (y-intercept) IRR (x-intercept) NPV @ 10% discount rate Horizontal asymptote