Compute the payback period and the npv


Question: 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%

Solution Preview :

Prepared by a verified Expert
Finance Basics: Compute the payback period and the npv
Reference No:- TGS02037211

Now Priced at $20 (50% Discount)

Recommended (99%)

Rated (4.3/5)