Calculate payback period-discounted payback period

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Reference no: EM131904247

A company is evaluating an investment project whose cost is $ 5,000 and which will generate a post-tax cash flow of $ 2,000 over the next 3 years. The rate of return required for the project is 12%. Calculate the following: a. the payback period, b. discounted payback period, c. the net present value (NPV), d. the profitability index (PI), e. the internal rate of return (IRR).

Reference no: EM131904247

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