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Calculate the initial investment made by the company

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Reference no: EM132044017

The "XYZ" company invests in a project estimated to be 4 years old, with an estimated 10% return rate. Additional information for the project is as follows:

Year Net cash flow after tax

1 $ 4.000.000

2 $4.400.000

3 $4.800.000

4 $5.200.000

When the project generates NPV of $ 1,000,000.

  1. Calculate the initial investment made by the company
  2. Calculate the payback period

Reference no: EM132044017

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