Calculate the payback period and the npv


Problem: Calculate the payback period and the NPV using the information below.

Cost of Capital = 13%
Initial Investment 100,000
Cash inflow 1 15,000
Cash inflow 2 20,000
Cash inflow 3 30,000
Cash inflow 4 35,000
Cash inflow 5 40,000

The IRR is closest to:

a. 3.5%
b. 5.5%
c. 10.5%
d. 20.5%

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Finance Basics: Calculate the payback period and the npv
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