Your firm is considering an investment that will cost $750,000 today. The investment will produce cash flows of $250,000 in year 1, $300,000 in years 2 through 4, and $100,000 in year 5. What is the investment's discounted payback period if the required rate of return is 10%?
What is the discounted payback period?
What is the net present value for Project A?
What is the profitability index for Project A?
What is the internal rate of return for Project A?