Calculate its payback period and net present value

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An investment proposal is expected to have cash flows for a project as given below for each year below in the table. The cost of project is $1000 today.

a) Calculate its Payback period and Net present value using the discount rate 13%.

b) If the Corporation is expecting to return its invested capital to recover in 4 years, either the corporation should accept the project or reject it on basis of payback period.

c) Decide on the basis of NPV either project should accepted or rejected.

Reference no: EM132596570

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