What is the projects payback period


Question: You are considering a project with an initial cash outlay of $80,000 and expected free cash flows of $20,00 at the end of each year for 6 years. The required rate of return for this project is 10 percent.

1) What is the project`s payback period?

2) What is the project's NPV?

3) What is the project's PI?

4) What is the project's IRR?

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