Calculate payback methods, discounted payback methods, net present values, internal rate of return, and profitability index. Determine what Durango should do based on calculations.

Calculate payback methods, discounted payback methods, net present values, internal rate of return, and profitability index. Determine what Durango should do based on calculations.

YR     Poofy Puffs                                  

0       -24890000                                                                     

1        12950000                                                     

2      ?                                                    

3       ?                             

4       ?

Poffy puffs payback method                                   

initial outlay 24890000                                                         

(2950000 yr 1 + 10923000 yr 2) = 23873000            

still need 1017000 from year 3 to payback initial outlay

1017000/8231000 =?                                                                       

payback period = ? 

Poofy puffs discounted payback method      

 PV = 1/(1+i)ⁿ

 PV yr 0 = -24890000

yr 1 = 11772727.27                          

yr 2 = 9027272.73              

yr 3 = ?

yr 4 =?

discounted payback period ?yrs

NPV = 31930455.57 (PV of yr 1, 2, 3, 4) - 24890000      

NPV = ?     

Profitability index = 31930455.57/24890000

Profitability index =   ?                                               

YR    Filling Fiber

0     -13500000

1       7230000

2       8100000

3      ?

4       ?

Filling Fiber payback method

initial outlay 13500000

7230000 yr 1; need 6270000 from yr 2 to payback initial outlay

6270000/8100000 =?

payback period = ?

 Filling Fiber discounted payback method

 PV = 1/(1+i)ⁿ

PV yr 0 = -13500000

    yr 1 = 6572727.27

    yr 2 = 6694214.88

    yr 3 =?

    yr 4 =?

discounted payback period = ? yrs

NPV = 23328276.76 - 13500000

NPV = 9828276.76

Profitability index = 9828276.76/13500000

Profitability index =?