An investment project requires a net investment of 100000

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An investment project requires a net investment of $100,000. The project is expected to generate annual net cash flows of $28,000 for the next 5 years. The firm's cost of capital is 12%.

Part 1 - Determine the payback period for the project.

Part 2- Determine the payback period accounting for the present value of future cash flow (ie. Present value calculations) Should the project be done? After considering present value is the 100,000 investment recovered in 3-4 years, 4-5 years or over 5 years?

Reference no: EM13619274

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