### Determine the net present value of the cash flow

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##### Reference no: EM13202334

A company has the following net cash flow:
Year Net Cash Flow (\$)
0 -100,000
1 40,000
2 45,000
3 50,000
4 -15,000
5 27,000
6 34,250
7 30,000
Determine the Net Present Value of the cash flow at annual interest rates of 15%, 20%, and 30%. At what (interpolated) rate would the NPV become zero? What is such a rate called? Also, calculate the payback periods, both simple and discounted at 15% per year.

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