What is the payback period for primus corp

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Primus Corp. is planning to convert an existing warehouse into a new plant that will increase its production capacity by 45 percent. The cost of this project will be $7,125,000. It will result in additional cash flows of $1,875,000 for the next eight years. The company uses a discount rate of 12 percent.

Question 1: What is the payback period?

Question 2: What is the NPV for the project?

Question 3: What is the IRR for the project?

Reference no: EM132544992

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