What is the payback period for project

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1. Your firm is considering an investment that will cost $920,000 today. The investment will produce cash flows of $450,000 in year 1, $270,000 in years 2 through 4, and $200,000 in year 5. The discount rate that your firm uses for projects of this type is 9.25%. What is the investment's net present value?

2. What is the payback period for a project with an initial investment of $180,000 that provides an annual cash inflow of $40,000 for the first three years and $25,000 per year for years four, five, and six and $50,000 per year for years seven and eight?

Reference no: EM131863554

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