The "XYZ" company invests in a project estimated to be 4 years old, with an estimated 10% return rate. Additional information for the project is as follows:
Year Net cash flow after tax
1 $ 4.000.000
2 $4.400.000
3 $4.800.000
4 $5.200.000
When the project generates NPV of $ 1,000,000.
- Calculate the initial investment made by the company
- Calculate the payback period