Consider a discount rate of 12% for the following cash flow with a salvage value of $99 billion at the end
of year five.
CF, $B
-120 4.62 8.11 (0.11) 9.25 23.43
Year 0 1 2 3 4 5
Calculate the following economic yardsticks for this project
a) NPV
b) ROI
c) IRR
d) Benefit Cost Ratio
e) Present Value Ratio
f) Payback time
g) Based on above results, conclude if this investment is economically satisfactory and why (how
your calculations compare to the guidelines for economic projects)